While I mentioned last week that N225 broke down out of the tight range (+/- 100 pts), it seems to be still in a range, a wider 600 points range, with 14,000 holding the support. N225 rallied up to just mid point of last +/- 100 pts range before it plunged down on Friday, but keeping afloat on 14,000.
600 points range is not really a wide range for N225 when it could move easily 300-400 in a single day.
It is good for option seller that N225 stay in a range (when you already sold your options, not when you are looking to sell option). But I am not going to bet it stay in the range for long.
Will N225 break 14,000 and thereafter the last low, then established a short term down trend? Or will it break the last lower high, giving directionless and stay in a wider 1000 points range? Let the market tells us.
NKVI at 21.02 is still at the lowest range of 20-30 for the past 6 months. In fact, NKVI was at 19.87 on Thursday. A number that we have not seen since January 2013 when N225 was at 10,000+.
Is this low volatility implying investors/traders are confidence that 14,000 will hold?
SPX broke 1900 on Tuesday without much fanfare. And it didn't close above it. While I feel that SPX is loosing strength to climb, it is no doubt still on up trend (higher high, higher low). So, until we see otherwise, it is still uptrend, despite moving slower.
SPX closed at 1877.86 up 7.01 points on Friday.
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