posted 9.28 a.m. et
Pre-open comment Friday 30th December
On Thursday I marked Aggressive Buying for the third time in four days and yet the chart has not managed to break above the VAH. You can see from the chart that the 1244 Support and the 1265 Resistance have limited the range for the last four sessions.
Dayframe: The 45poc just migrated higher to 1256 and intraday Support/Resistance at this level could well give a clue re ST direction.
Whether EURUSD accepts price below the Jan low remains to be seen as the chart has not rallied convincingly as yet – see yesterday’s comments.
Second Level Resistance = ES 1265 (VAH)
First Level S/R = ES 1256 (45dy poc)
Second Level Support = ES 1244 (75dy poc) SPY =125.44
Sentiment: My version of the Rydex Assets Ratio was down slightly to 2.54 (from 2.66). Recent high is 2.96 (11/07).
Supporting Charts (+ or – or ? for equities). (Momentum = daily PriceOsc)
– EURUSD: printed a new low for the year on Thursday. Momentum is down.
– Dollar Index: pre-open prints above 80.15 (the 1/2R off the 2008 low). Strong location. Momentum is up.
– TLT: the decline off the Dec high has held the 117.88 Support (10month poc). Strong location. Momentum is up.
imo these charts have a negative ST bias for equities.
