SPX still about R2, NDX big day and DJX , today’s levels and comment.


R2 in the SPX held the market right up until the last hour, so it did very well indeed, especially considering that this was also strike 3.

Today the weakness continues, which makes it hard to have a high conviction in its current level, but 2755 represents quite a step-up so that should hold today at least if 2745 fails.

All this weakness above the zone raises the distinct possibility of the NZ moving to 2695-2705, which just goes to show actually how weak these ratios really are because at the start of this expiry 2705 was R2.


Range:            2705  to  2745

Activity           Poor

Type:              Bearish



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Friday was a big day in the NDX although not for the introduction of a swathe of new strikes.

The open was up 28.55-points which at 6613.13 immediately placed it above Y2.

Moreover, the close being above 6650 means that it remains in Y2 today as the weakness seen here has not gone quite far enough.

However, it has gone far enough to remove R1 entirely.

So just like the DJX there is now nothing more ahead and two weeks to go.


Range:            6650  to  ….

Activity:          Strong

Type:              Bearish



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The step-up level we mentioned in the DJX on Friday was indeed academic as the open took it out of the equation from the very start.

This index opened at 25114 just above the pertinent level, but the low of 25112 made the objective very plain.

Still two weeks to go so now it will be entirely about that position and whether it is allowed to run right up to the expiry.


Range:            24900  to  …… 

Activity:          Poor

Type:              Bearish



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January 8th, 2018 by