Pre-open Tuesday 2nd March
Monday’s high was just above 1115, the level mentioned yesterday as the high of the cumulative Value Area of the last six months. So this is a probe above Value and therefore may well be perceived as opportunity by the Sellers. If so, we will likely see some red marked today because pre-open ES has printed up into the 1120’s. If not then we will have to assume that price is being accepted at these levels and that would be a bullish indication. Note that Friday and Monday auctioned higher generating narrower value areas and declining volume so price is not necessariliy being facilitated higher here.
ST sentiment: On Monday the Rydex Bear fund assets that I follow were down slightly to a 17day low helping to lift my version of the Rydex Assets ratio slightly higher to 1.8.
