posted 5.32 a.m. est
Pre-open comment Wednesday 9th February
Within the first thirty minutes of Tuesday’s session there was a test below 1316 (level given yesterday) which was quickly rejected. I marked Responsive and Aggressive Buying which means there have been six instances of Significant Buying in six days. Buyers are in control of the dayframe and there has been no Response marked from the Sellers.
Dayframe: With ES hitting new highs we have to look at minor levels for support/resistance. 1318.50 (very minor poc) is that level today. Chart prints well above the 8dayVAH (currently at 1309) which has recently slowed progress higher, see yesterday’s comments. Shorts eliminated for me since green-at-top Buying on the 1st of the month.
First Level S/R = 1318.50
Second Level Support = 1302.50 (minor 10dy poc)
Support = 1293 (minor 18dy poc)
ST Sentiment: My version of the Rydex Assets Ratio was down to 2.73. That’s four consecutive higher SP500 closes and four consecutive lower Rydex ratios. With the Money Market fund hitting a new low it looks like top picking is being indicated which remains ST Bullish (contrarian). This ratio is still historically high but down from 3.94 (on 01/19) which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities). As I write, four hours pre-open:
+ EURUSD: prints above 1.3580. If chart holds above that level it is in a strong position.
+ UDX: Still weak below resistance at 78.53.
+ TLT: Reference level is now 91.80. Chart currently weak below that level. New multi-month low on Tuesday.
imo these charts have a positive bias for equities.
