Pre-open Wednesday 24th February
Tuesday’s range was below the level of Monday’s poc. This reversed the pattern we saw last week. Value Area was lower, wider and generated above average volume. When a market is nervous it will quickly print back to the most local poc of any significance (value). This doesn’t necessarily imply further weakness, that will depend on whether we see Value Areas being printed below 1094, Selling imbalance etc. Bulls would want to see 1094 providing support. Bonds (e.g. TLT) were strong and the Dollar index held again above the major 1/2 level. Also EURUSD is in a weak position (see chart). None of this helping equities.
