The DJX zone is now critical.

Nb. Comment from 05/023/19 (Not published online)





Nb. Comment on 05/29/19

It is very difficult to appreciate that this is in fact a triple witch expiry, or quadruple as the US likes to call them, as the activity remains so low.

The level overall is much more befitting a biggie, but it all looks passive.

And, we are back to that ridiculously wide zone.

However, and as we pointed out, the bottom boundary is hugely significant.

Last Thursday, the 23rd, this index got as low as 25328 before finishing at 25490.

At the time we mentioned how statistically irrelevant 10-points is on a twenty-five-thousand-point index, and the opening gap up the next day just went to underline this.

The fact that the next day, Friday, the intraday low was 25496, was also very telling.

So, yesterday, it was looking good, but right towards the end the market got spooked, and, hey presto, strike 3.

The only good news is that the next level of support is actually rather close, and it jumps straight in at R2, please see above table.

Otherwise, it’s going to be all down to the SPX, please see our previous comment on the 21st May, and from our calculations on the 28th R2 here is still at 2770.

The expiry still has a very long way to go, but it is heating up nicely, and now we are testing levels, both in this index, the DJX, but also the SPX, this will ignite activity, if only because of the dynamic delta, so the fun starts now, for us at least.


Range:            25000  to  25500             

Activity:          Very poor      

Type:              Neutral

May 29th, 2019 by