The SPX opened just below the upper boundary, suffered a little knock back and it took about 40 or so minutes but once it broke through it was what we would describe as quietly confidant.
This is in fact exactly what activity suggests as well and as we are in the holiday week so it is good to get this much.
The first hurdle is now dead ahead, being R1 at 2590, and how it reacts to this will very probably dictate this expiry.
We still think a test of R2 is on the cards though, if only because the US does love a big figure on the holiday.
Range: 2570 to 2580 or 2580 to 2590
Type: On balance only just bullish
No change in any of the NDX’s ratios and more importantly no change in the NZ.
It did open a few points higher at 6319.57 and significantly went as high as 6324.59 for strike 1 against Y2 at 6325.
Therefore, so far at least, this index is conforming to expectations, although for the first day, like the DJX, we do sometimes see a bit of feet finding.
Of course, with the SPX now so close to their R1 and this index to their Y2 the combination can sometimes be more powerful than just individually.
Range: 6025 to 6325
Activity: Very poor
It was bit of an odd day in the DJX yesterday as it didn’t conform to expectations.
To be honest we probably wouldn’t normally give it a second thought but because we are being so sensitive over its possible return to normality we are analysing every little move.
The open was 23370 which if it was feeling uncomfortable with the R1 ratio it is in then the trading range should have been 23300 to 23400, and it never went near the bottom, not an issue, but did go as high as 23456, which may be.
It was the first day, but today will eliminate that excuse, so it could be an informative day.
Range: 23100 to 23600