posted 9.29 a.m. est
Pre-open comment Wednesday 2nd February
On Tuesday I marked Significant Buying. This was on a gap day higher which gives me less reliable stats but it would be highly unusual to see a green-at-top day marking a high of any significance – so I assume that high will be tested in the near term.
Events abroad seem to be the dominant focus so in the ST anything could happen but as long as ES holds above the 3month poc at 1281.50 it’s in a strong position. The large cap indices have broken out to new highs, a further positive would be to see the R2000 and Nasdaq confirming.
First Level Support = 1293 (minor 14dy poc)
Second Level Support = 1281.50 (3month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly again on Tuesday to 3.08. This is historically still very high but down from ratio (on 01/19) at 3.94 which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities)
+ EURUSD: Still strong above support. New 45day high today.
+ UDX: Still weak below resistance. New 55day low yesterday.
+ TLT: Closest reference level is the 2month poc at 92.56. Chart remains weak below that level Broke down to a new multi-month low yesterday.
imo these charts have a positive bias for equities.
