Lurking in the shadows are rally killers too numerous to mention and any could easily derail such fragile upside movement. We'll dissect long-term trends and market lows behind and ahead in Saturday's edition. Trade the daily trend, use small amounts of risk capital willing to be lost and consider trading a very few March contract index options. Ratio listed is percentage of calls to puts or puts to calls respectively. Support is factored from dividing puts by calls at strike levels beneath index closing price.
Resistance is factored from dividing calls by puts at strike levels above current closing price.
Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts on the Chicago Board Of Trade. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader s direction. In the last two weeks the Commercials have added more than two percent to the short side, this is significant considering they had been holding around the twelve percent range for several weeks.