Pre-open Friday 12th February
The bias of the weekly Market Timing Chart is negative (see ebook) but in the dayframe analysis Significant Buying was marked on Thursday which often indicates higher in the short term. These obviously conflict.
As I suspected it might, the major poc migrated lower to 1064, the first time since the March low that the poc has come lower. This is usually a negative development but not always. If Effective Buying is now marked above 1064 it would be a clear sign of strength because it would be above the major poc and that’s how the situation has changed.
Thursday’s Buying was both Responsive (green-at-bottom) and Aggressive (green-at-top). It is not conclusively Effective Buying because Thursday’s Value Area was overlapping Wednesday’s.
There are now two definite levels of poc support/resistance. The 1094 poc resistance and 1064 poc support.
Time spent below 1064 would indicate lower.
New longs below 1094 but above 1064 are speculative because the trend (weekly market timing chart) is negative.
LT sentiment: AAII (public poll) reported an increase in Bulls from 29.2% to 36.8%.
ST sentiment: On Thursday my version of the Rydex Assets ratio was again almost unchanged at 1.20 (a three month low) and the Rydex Investor Class Money Market assets were up again to a new 20week high.
