We have two surprising aspects in the SPX today, not biggies but certainly worth taking note of.
The first is the appearance of R1 immediately below the zone, in itself unremarkable and to be expected, but what is not is that 2550 remains at Y1 which could indicate it still harbours aspirations to being the NZ.
Secondly is the fact the market got as high as 2634.89 which is a deep incursion into R3, so they really were trying for sure, but ultimately failing and this alone is enough for us to explain the discrepancy between this index and the DJX.
If it does breakthrough although DR has slipped to 2655 the old 2645 will still pack a very hefty punch.
This is turning into a real “mighty Dec” expiry.
Range: 2605 to 2630 or 2630 to 2655
Where can you start with the NDX?
Annoyingly the NZ has moved again, as yesterday’s fall took it right back into their old zone and the bottom boundary yesterday was 6275 and the low was 6279.37, both of which would have made us look better than it appears today.
The reason for the move is the level of activity.
The ramifications are harder to discern but its been a long time since this index was in bear territory so the reaction will be informative once they work out what has happened.
However, what can’t be ignored is the decimation of the ratio above the zone.
Range: 6150 to 6375
Activity: Very strong
Yesterday was not as informative as we would have liked in the DJX and sadly we are no wiser as to whether or not this index is back in its bubble.
The open was 23883 up 47-points and being just 17-points from the big figure is too close to call which side its “uncomfortable” range should be on, and of course it is in its R2 ratio bandwidth so no foul doing what it actually did.
The fact the SPX tried so very hard to get past their R3 level and failing, dropping 15-points into the bargain, certainly clouded the issue here.
So, the jury is still out but activity suggests the bulls have been reinvigorated, however now DR comes into play here.
Range: 23600 to 24100
Type: On balance definitely bullish