2665 in the SPX did play a significant role yesterday but in the end it did take R3 at 2670 to slap a bit of sense back into this market as the high was 2669.72.
As one can see R3 has slipped a bit again today so 2670 now replaces the role that 2665 played yesterday.
However, the bigger picture is that this is the rollover, so while the market is in an equity led tax induced euphoria the grim reality for derivative players will come crashing home now.
Range: 2630 to 2675
Jan today is intriguing as the moves look rather serious and yet it doesn’t really impact until tomorrow onwards.
However, it is activity that caught our eye as that is acceptable and being “neutral” is even either side as well as being not “not” shows it is building, again as it should be.
The intriguing part comes from how the ratios have moved, which is they haven’t below the zone but above R1 slips to 2665.
A very small movement but the end result is the market is back in the Y ratios here, which is significant.
On top of which R3 comes in quite significantly, which shows what bullish activity there was is of a very optimistic variety.
Range: 2605 to 2665 or 2665 to 2705
NDX Dec to Jan Rollover 13th Dec 2017
As suspected in the NDX the NZ has returned to 6375-6425 which leaves this index in it for the rollover.
In fact, yesterday the low was 6371.69 which was very probably a test of the bottom boundary as it obviously changed quite early on in the day.
The good news about finishing in the zone on the rollover is that resets the account as it were and now this index is free to enjoy the grey area (Thu & Fri) free from any hangover.
Range: 6375 to 6425
Type: On balance only just bearish
No change in Jan’s zone but there is still plenty of time.
The issue here is activity, and as it didn’t register yesterday we hoped to see some today and again it was very disappointing for this stage in the expiry.
The base line is so low it is basically the polar opposite of Dec so achieving moderate is really not saying very much at all.
Of course, with such low levels it is hardly surprising there is still so much Y1 around, but at least above the zone it has come in a bit although it is still so far away one requires binoculars.
Range: 6325 to 6675
It was a big day for the DJX and it looks like today will be as well as they tried very hard to break above DR getting as high as 24552.
But as everyone knows we don’t believe in coincidence and yet the close was right on the level, so it looks like the open may be brought to bear.
Our comments in the SPX apply here just as much, the only difference is this index has been doing it all year.
It does bring back memories though of when there was a trading floor and if it was quiet and the market was in this mood it used to be fun to shout something random to see if it would kick off the bull stampede again, frenzy them up a bit more as it were.
Range: 23600 to 24500 or 24500 to ……
Activity: Very poor
It is a very close call in Jan as it is a twenty-four-thousand-point index and it is just 4-points above 24500, but we have decided to call it above its zone as evidently that is their intention.
Nevertheless, this is significant as this now takes this expiry north of its zone.
The only change is Y2 now starts at 24700, but if they can take on DR then Y2 is not even a speedbump.
Range: 24300 to 24500 or 24500 to 24700
Type: On balance bullish