posted 9.22 a.m. est
Pre-open Monday 1st February
Highlighted previous comments are relavant.
Last week I marked two instances of Significant Selling and no Significant Buying. The week finished with Aggressive Selling (red-at-bottom) which almost tested the next major support level at 1065.
Sellers (red) dominate at the moment and there has been no Significant Response from the Buyers. There was enough time spent below the 1094 poc last week to suggest this is an increasingly weak market but although Value Areas widened on Thursday and Friday they were overlapping rather than lower so this is not yet Effective Selling below 1094 – see comment from 26th Jan above.
The market is technically oversold but there has been little bounce so far although a probe down into the 1065 support might uncover a Buying Response.
As you would expect Sentiment shows an increase in Bears but this move will probably require a greater degree of capitulation before a low is established. At least until the Rydex timers rush for the exit the odds favour more downside (especially if 1065 is broken).
