posted 8.48 a.m. est
Pre-open Tuesday 16th February
Last week I marked two instances of Significant Buying and no Significant Selling. The market is attempting to rally from oversold levels but day-to-day Value Areas were overlapping last week which does not yet signify directional conviction. Also notice that the last five days price action all took place within the pevious two days price range when Sellers were active.
This is typical “Sellers Resting” type of price action and if that is so then a probe above the 3WkVAH at 1090 would most likely see the Sellers respond – 1094 poc should be strong resistance. Price consolidating above 1094 would be bullish.
On Thursday the major poc migrated lower to 1064 and this is the most important level to watch. Effective Buying above that level would be bullish. Time spent below 1064 would indicate lower.
The bias of the Nyse weekly Market Timing Chart still is still negative (Nasdaq is neutral) and until that changes I will assume that any Significant Selling Activity (red) that is marked is likely to be more Effective than Buying (green).
ST sentiment: On Friday my version of the Rydex Assets ratio was up slightly from 1.2 to 1.27 and the Rydex Investor Class Money Market assets were up again to the highest level since Sep 2009. Option ratios are also indicating a lot more bears recently.
