I just posted the chart below into the S&P500 thread, and on looking over my post I noticed something in the chart - the open interest decline going into the weekend (the G7 weekend) .
I don't really pay any attention to open interest, what with all sorts of derivatives hedging that goes on the open interest figure is very hard to interpret (translation: I'm not smart enough to interpret it).
But this one stuck out like the proverbial to me ... bucketloads of shorts covered going into the weekend, reducing their exposure ahead of the G7 and any potential nasty surprises from it (so far it appears there wont be any of these).
Anyone do open interest analysis on futures contracts? Any thoughts?
Chart from Futuresource, and polite picture of the proverbial from someplace else.