SPX Dec to Jan Ratio Rollover Table and let’s hope the ratio effectiveness continues, with levels and comment.
In our last comment on the SPX we called it “Jack-hammer markets is the phrase you have been looking for.A sharp plunge down to support, for the SPX this has been R3, followed by the long climb back up before plunging again trying to drive that R3 further down”
Upon reflection the description we were really looking for was and still is “pile driver”.
Also, and this is necessary to repeat, these ratios are as a direct result of activity, so they will change, and so we should really calculate it daily, sorry.
The writing was on the walls yesterday when the SPX opened at 2590.75, or to us, R3.
Next line of support was DR at 2545, which was severely tested as the intraday low was 2530.54, but the close was just as significant.
The zone is now 150-points away, which is a gargantuan task, especially considering the emotion present, so you are probably looking at the expiry rather than the rollover now, assuming that they can even get out from under this pile driver.
to 2545 or 2545
Activity: Very poor
Type: On balance only just bullish
At this very same point when we were looking forward “to the mighty Dec expiry” the SPX had just closed at 2722.18 having traded that day up to 2754.60.
The reason we mention this is because at that point were just totally amazed that this “biggest of the big” still had so much minimal Y ratio present.
In fact, R1 didn’t appear until 2695 at that time.
R3 was at 2620, and R3 up until yesterday had caught the intraday lows on 5 occasions, causing many spectacular bounces.
Funnily enough, the expiry intraday high was 2800.18 which back on the 3rd Dec on the back of a good rally was more than close enough for us to call that a test of R1 at 2805, above their zone.
From the biggest to this expiry, and Jan is normally the smallest, although it is looking well populated there can be no disguising that there is now about 200-points of minimal Y ratio present.
Of course, the ratios will change, but if this index does get out from underneath this pile driver then the potential for a bear squeeze is enough to make one’s eyes water.