poested 9.20 a.m. est
Pre-open Thursday 4th March
Wednesday’s Value Area was overlapping/higher and while volume was up on Tuesday’s, once again it was 30% less than the 20day average.
My view is unchanged from yesterday – highlighted above.
Time cycles: I see the end of the month as the most important time pivot period (including ten years from the 24th March 2000 high) but it is worth noting that we approach the anniversary date of the 6th March 2009 low. One year from an important low is a high possibilty turn date.
ST sentiment: On Wednesday the ISEE (equity only) Index came in at 186 which is the highest reading since 1st February and the Rydex Money Market assets hit the lowest level since the same date. VIX closed at 18.83 – the lowest since 20th January. The increasing optimism/complacency indicated here was not reflected in the Rydex Equity fund assets that I follow. Bear fund assets were up 28% which brought my version of the Rydex Assets ratio down from 1.8 to 1.3. Remember these are contrarian indicators. I would say they are mixed at the moment.
