SPX June to July Ratio Rollover Table 12th June 2018
The SPX has been continuing to fight a rear-guard action, with R2 at the moment holding the tide in check.
As we said the driving force seems to be the DJX this expiry and this index is just plain and simply being an irritant as it is not playing along.
As you can see from the table above R2 has slipped from 2775, where it held the market up for a couple of days, to 2785.
We suspect 2780 was a stepping stone to where it is now, solely because the highs on Thursday and Friday last week were 2779.90 and 2779.39, and anyway it is R1 now.
Of course, Wednesday will be the big day and whether or not the SPX will flex its considerable muscle, and if it does it may well transpire that in a compromise the zone will shift to 2745-2755 by either the rollover or the expiry on Friday.
Range: 2730 to 2785
If you are a trader then you should be getting excited with what could be in store for July.
Remember the May expiry which bounced between the two R1 levels for an almost 9% return in just 4 weeks, well as it stands in July this bandwidth is an even more impressive 7.2%.
But, don’t forget, that just represents one-way not there and back, so 10% is easily possible.
Again, it may well depend on whether there is an agenda in the DJX, but even if there is they won’t get much of an argument from this index anyway.
Range: 2705 to 2795