Pre-open Wednesday 13th January
Similar to last Thursday there was a brief probe below 1129 yesterday which was rejected. This confirms 1129 as “a good reference level for short term traders” as I described it a week ago. From Tuesday’s low ES has printed back as high as 1137.
Although I didn’t mark Significant Selling Tuesday’s Value Area was lower and wider on increased volume.
Short term sentiment measures are interesting:
My version of the Rydex Assets Ratio shot up to 3.2 on Tuesday which is extremely high. This was on a down day for the market and strongly suggests that the retail investor see this dip as a buying opportunity. They may get this one right but the fact is they have a consistent record of being very wrong when they are so one-sided like this.
Also note: VIX hit a new low on Monday.
