Pre-open Monday 22nd March
Friday marked the first time since 4th February that Significant Sellers appeared. Last Friday was also quadruple witching and these expiration dates are often highly volatile and market movements are not always to be “trusted”.
However, Responsive Selling (red-at-top) and a lower, wider Value Area that generated increased volume needs to be respected. My #1 Safety First Rule tells me never to fade the last imbalance – so I cannot initiate new longs now until Buying (green) is marked again.
First test for the Sellers is the First Level support at 1143.
ST sentiment: The Rydex Timers turned a lot more bullish last week which I said on Friday “may be ominous” and the VIX hit a new intraday low.
Supporting charts look a lot less bullish for equities with the dollar stronger and Gold weaker relative to the important levels we have been monitoring (these charts will be discussed in the webcast).
