Pre-open Wednesday 3rd March
from pre-open comment Thursday 25th February
>>Bulls made progress last week but the market currently lacks the conviction to drive higher away from the major poc (ES 1094)<<
For three consecutive days we have seen higher Value Areas above the 1094poc but declining volume. Tuesday’s volume was 30% less than the 20day average. That’s not enough buying conviction to assume the move higher will continue especially as no Significant Buying (green) has been marked in that time.
Technically the positives outweigh the negatives but until I mark Effective Buying above 1094 I think there is a good possibilty that ES will continue to be drawn back to that major level of value especially as the market is getting overbought here.
ST sentiment: Although the Rydex assets that I follow are not yet firing any contrarian signals, for six consecutive days the Bull Fund assets 10dayma has risen and the Bear Fund assets 10dayma has fallen so I’m watching these indicators closely. VIX closed at a 21day low which suggests growing complacency.
