SPX back in R1 bandwidth, NDX journeys end? DJX R3 still crucial, todays levels.


To be frank we thought yesterday in the SPX was bit of a holding pattern type day with a range of just 10-points.

However, it seems it was more than that as there has been a continuation of the weakness in the ratio above the zone, but now R2 has slipped to 2630.

With the market standing still this realignment has had the effect of putting this index back into its R1 ratio bandwidth, although this now makes todays open crucial.


Range:            2605  to  2630       or        2630  to  2655

Activity           Poor

Type:              On balance bearish



[affilinet_performance_ad size=468×60]



The NDX got off to a shaky start yesterday opening down 21.93-points which took it further away from the comfort of its zone.

However, the low was not much worse than that and this time it powered up through the bottom boundary of its NZ and managed to close inside.

The big test will be today to see if it can hold within it, which is not that easy at this stage of an expiry, but particularly so in December.

If the zone holds it could well be that its journey is done for this expiry.


Range:            6275  to  6325

Activity:          Moderate

Type:              On balance bearish



[affilinet_performance_ad size=468×60]



Basically, a repeat of what we said yesterday in the DJX as it still applies “if it tests it today (24100) and if it holds then that is a really big decision, even more so in light of the rollover a week today.

Of course, if it breaks below it then this too has significant ramifications.

And overshadowing all this is whatever happens will define whether or not it is still in its bubble, and expiring in R3 in the mighty Dec expiry will not bring any Christmas cheer to someone”.

The low on Tuesday was 24155, then yesterday it went as low as 24134 twice before closing near these lows.

Difficult to tell whether these were tests or not, ordinarily we would say no, but now this index is twenty-four thousand 34-points is only 0.14% so its not impossible shall we say that they were.


Range:            24100  to  …… 

Activity:          Only just registered

Type:              Bullish



[affilinet_performance_ad size=468×60]

December 7th, 2017 by