Saturday 15 December 2007

Commitment of Traders and Critical Support

Here are the latest charts from Friday's Commitment of Traders report.

Commitment of Traders Image

Commitment of Traders: Professionals at +6.1%

Professionals maintained their long positions at 6.1% of total open interest in all stock index futures, a decrease of 0.5% from last week.

Commitment of Traders Oscillator Image

Commitment of Traders: Oscillator at +49

The Commitment of Traders Oscillator crossed the zero line this week and reached +49. Crossing the zero line confirms the low reached during the last cycle at 1,417, marked with a blue dot.

The Emini looks very weak with a reversal bar this last week and closing on the lows. The Commitment of Traders Oscillator is also now above zero and, strictly speaking, over-bought. However, we saw possible climactic volume at the close on Friday.

Monday's trading will be critical to see if the 1,475 level holds. If it does not, we'll probably try and close the gap made on 28 November (see the chart below).

Emini Gap 28 November Image

Critical Emini Support at 1,475

Remember, the COT Oscillator is a longer term Emini indicator and designed to highlight broad trends. The Commitment of Traders Report data is collected after the close on Tuesday each week and then published after the close on Friday. Click here for a full explanation of this Commitment of Traders analysis.

Filed Under Commitment of Traders

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