posted 9.29 a.m. et
Pre-open comment Friday 20th January
On Thursday ES printed a higher, albeit narrower Value Area on less volume. SPY RSI(14) reached its highest reading since the May 2011 top but only one (ineffective) appearance by the Sellers in 20 days.
Potential level of Resistance around 1315 (previous poc).
First Level Support = ES 1286.50 (min poc)
Second Level Support = ES 1271.50 (20dy poc) SPY = 127.91
Sentiment: AAII (public poll) reported Bulls at 47.2% which is slightly down on last week’s 49.1% which was the highest number since w/e 18th Feb 2011. Bears increased to 23.6%, from 17.2% which was the lowest number since 24th Dec 2010. Investor’s Intelligence (newsletters) poll was almost unchanged which means Bulls% is still very high but Bears (unchanged) at 29.8% is not a low number (at the May high lat year they were 16.5%).
My version of the Rydex Assets Ratio was lower at 2.62 (from 2.89). The ratio on Friday 6th reached 3.0 which was a five month high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Currently prints above the 1.2811 poc with momentum up.
? Dollar Index: Chart tested the important 80.15 Support yesterday. Holding above that level but momentum now down.
? TLT: pre-open is testing the 10month poc Support at 117.88.
imo these charts have an unclear bias for equities.
