posted 9.26 a.m. est
Pre-open Tuesday 9th March
Note: we now move out of the time pivot I’ve been talking about (see highlighted comments on graphic) and price accelerated up into that potential turning point.
Monday’s session generated a higher but much narrower Value Area and very low volume. This kind of profile is usually interpreted as a sign that trade is not being facilitated higher. But they can be deceptive. This could be just Buyers resting looking to bring a Response from the Sellers and until I mark Effective Selling that’s the way I’ll view it.
ST sentiment: On Monday my version of the Rydex Assets ratio was down slightly to 1.44 which is low relative to the range of values over the last few months. Rydex timers have refused to get excited above this rally since the February low and that’s not bearish.
In contrast to that are:
1 Monday’s ISEE (equity only) Index which came in at 213, the highest number since Jan 19th (the recent sp500 price high) indicating a lot of public call buying (bulls) relative to puts (bears) and..
2 The VIX which closed below 18 again on Monday.
