posted 8.10 a.m. est
Pre-open Tuesday 2nd February
Monday generated another overlapping Value Area – very narrow on much reduced volume. The last four days have ranged between 1094 resistance and 1065 support. 1096 is the high of the 6day cumulative Value Area and therefore a probe above the 1094 poc should represent opportunity for the Sellers and I would expect them to respond.
ST sentiment indicators: My version of the Rydex Assets ratio fell from 2.05 to 1.87. Although the Bull fund assets that I track fell to the lowest level since early November the Bear fund assets were up only marginally. This suggests increasing concern among the Rydex timers but not capitulation.
The VIX closed at 22.59 which is the lowest for seven days. If Friday were to mark a low then the VIX was behaving unusually at that point – it usually spikes higher as a corrective low is established.
