SPX delicately poised, NDX all about their zone and DJX high activity, today’s levels.

SPX , NDX and DJX Ratio Table 4th Dec 2017

The SPX is delicately poised at the moment although after Friday’s recovery the bulls are still being very aggressive.

At one stage it was down 42.06-points in a fitting and proper response to hitting DR at 2655 on Thursday when it got as high as 2657.74.

However, as you can see, DR today has slipped to 2680, and we also see the introduction of R1, so this now gives the bulls a bit more headroom but historically one encounter with DR should be enough, hence pivotal, but these are no ordinary markets what with the big tax concessions dominating everything.

Although it has breached R3 once, well courtesy of an opening gap, so this will be its first test.

Range:            2655  to  2655

Activity           Moderate

Type:              On balance decidedly bearish

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Wow third day in a row that the NDX’s NZ hasn’t changed, although since it moved to this level the market has been below it.

Although, the NZ may not have changed it has not stopped them from adding new strikes to this expiry, so many in fact it is now officially the largest ever expiry by number of strikes.

Please do not ask as no we have absolutely no idea who or why anyone needs so many.

Not a lot else has changes, still in a sea of Y1 ratio, so we would expect volatility anyway, and the focus is all on whether or not it can recapture its zone.

Range:            6150  to  6375

Activity:          Moderate

Type:              On balance bearish

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There has been a rather huge change in the DJX as DR has now gone.

Considering the recovery from a fall 351-points (range was almost 400-points) to being just down 0.17% is remarkable in itself but for us the most important aspect was it getting back above R3 at 24100.

This then coupled with the loss of the next level of ratio means it has effectively got clear skies above, even if that means it is in a R3 ratio bandwidth.

Of course, this magnitude of change could only come about with a high level of activity and despite the tax cuts that is a lot of money coming off the table.

Range:            24100  to  …… 

Activity:          Strong

Type:              Bearish

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