Professionals continue to be heavily short.
Commitment of Traders: Professionals -11.0% (short)
The Professionals net Short positions dropped from -12.2% to -11.0% of total open interest this week. Although the index is making lower lows (734 close), the Commitment of Traders data has improved a little from a maximum low of -15% to this week’s reading of -11%.
The red line in the chart above is still negative but rising. This shows the SP (large contract) Professionals are becoming less bearish than the ES (mini contract) Professionals. Back testing shows the SP Professionals are a more reliable indicator of market direction.
Commitment of Traders: Oscillator -81
The Commitment of Traders Oscillator is unchanged from last week’s reading of -81. The Oscillator is over-sold and has come back down from a spike up 2 weeks ago (possible bullish divergence).
High Volume Churn & Climax Down Bar (Emini weekly)
The Emini dropped below the critical 800 level two weeks ago. We’re now down almost 90 points from the close on Friday 13 February. This week we saw a High Volume Churn weekly bar, showing some slowing of the down move.
Remember, the Commitment of Traders data is collected weekly after the close on Tuesday and the Commitment of Traders Report is published after the close on Friday.