CONTEXT Starts the Week Scrambled and Indifferent

The CONTEXT model vs ES ( a measure of activity in institutional assets like rates, bonds, pm's, credit, etc.) all rolled in to a model used by institutions as a guide of whether ES (SPX futures) are over or undervalued, looks about as bland as it can possibly get...

This is from 1 a.m. to 9 a.m. and about +2 points to -4 points, in other words, about neutral which fits fine with what we've seen in Leading indicators on the mini cycle we first saw setting up Thursday.

I will add that Friday's Dominant Price/Volume Relationship among the major averages (actually each of the component stocks in each average) were heavily skewed and Dominant in most of the averages and where they weren't, there was a "Co-Dominance".

Of the 4 possible combinations, Friday ended the day with the NASDAQ 100,  Russell 3000 (which saw a short squeeze in the most shorted names) and the SPX all dominant as the Russell 2000 came in co-dominant with Price Up / Volume Up and Price Up/ Volume Down.

Price Up / Volume Down was the Dominant theme Friday. Remeber, this is not the finish of the average itself, but all of the component stocks that make up that average, the average itself may be different, but this reflects the breadth inside the average. Price Up / Volume Down is the most bearish of all 4 combinations and often creates a short term "Overbought Event" in which the market stalls or struggles the next trading day, unlike Thursday's P/V relationship as I posted it Thursday...

"Dominant Price/Volume Relationship

"The Dominant Price/Volume Reading tonight among all of the major averages (the components of the averages) was a very dominant (about 50-75% in 1 relationship of 4 possibilities) CLOSE DOWN / VOLUME UP, this is a VERY bearish relationship, BUT SHORT TERM OVER THE COURSE OF A DAY OR SO, IT OFTEN ACTS AS AN OVERSOLD SIGNAL SO A BOUNCE FROM THAT SIGNAL WOULDN'T BE SURPRISING."

Friday's Dominant Theme was, again, Price Up / Volume Down which is the most bearish of the 4 themes and again, often marks a 1-day overbought event, almost the exact opposite of Thursday's closing Dominant P/V theme. We'll see if it holds true in this low volume, bond-less market.