posted 4.40 a.m. est
Pre-open Wednesday 25th November
Tuesday a.m. high was 1105.5 right off the open. I suggested yesterday that if there was an early rejection from 1106 we could see ES close the gap and return to the 1089 poc but this didn’t happen as Responsive Buyers (green-at-bottom) stepped in at 1095 and auctioned price back to 1106. This is the first time I have marked Significant Activity for seven days and means I cannot consider the short side until Significant Sellers are marked. As I write ES is printing 1106 again but this is 4.30a.m. est.
However – yesterday the ISEE (equity only) index hit 247 which is the highest number this year; VIX closed at 20.47 (lowest since Aug 08) and the Rydex timers were getting out of Bull funds and into Bear funds lifting my version of the Rydex assets Ratio to 2.9 which is high. All of that means the public got very bullish yesterday. That most likely indicates either the market is going to struggle to go higher right here (not holding above 1105 will be the clue) or there is an acceleration up into a longer term top coming (consolidating above 1105 over next few days will be the clue).
