Pre-open Wednesday 6th January
Tuesday: ES built value centred around 1129, same level as poc on Monday. That gives a good reference level today for short term traders.
Apart from the last day of 2009 (and that was most likely squaring up) there has been a lack of imbalances on the profile for weeks. Breadth and price location supportive of higher prices but this market is overbought and sentiment is getting very overheated. Looking for Effective Buying to be marked before committing to new longs.
Short Term Market Sentiment
Rydex Assets Ratio:2.8 (getting high again)
ISEE (equity only) Index:198 10dyma:189 (the highest since 16th November)
