Pre-open comment Tuesday 10th February.
Monday’s session generated a lower Value Area but still generated entirely above the 2033.50 poc. As long as ES holds above this levelit is in strong price location and Significant Buying marked above that poc would be a further positive.
First Level Support = 2033.50 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 200.11 (8mn poc)
Breadth: CP Market Timing System turned positive for Nyse and R2000, turned neutral for Nasdaq and stayed positive for U.K.
Stocks>50dyma numbers: Nyse 58% (from 61%), Nasdaq 52% (from 56%), R2000 53% (from 59%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 10.70. In early December the ratio reached 13.73, the highest in the database.
Supporting Charts:
Bonds TLT: recently exceeded the 2012 high and on 01/30 printed a new high but pre-open today has printed a 21day low.
Dollar Index: on 01/23 printed its highest level since 2003 and is today printing close to that high. In recent webcasts I have talked about the possibility of a turn here for the dollar. Watching levels on EURUSD (below) and AUDUSD in particular.
Gold GLD: rallied strongly last month and probed the Resistance at 124.12, the major poc, but is down from that level.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and fell sharply. Has rallied this month and Momentum (PriceOsc) has just turned positive.
EURUSD: has been declining since May last year and has reached major 1/2R Support at 1.1241. Currently holding that level (just).
