posted 9.04 a.m. et
Pre-open comment Tuesday 31st January
Pre-open yesterday ES was printing well below the 30dy poc at 1307 and I wrote “Bulls would want to see Buyers quickly auctioning ES back above that level”. Buyers Responded (green-at-bottom) soon after the Open and by the afternoon ES had recovered and was consolidating above 1307.
Further strength would be expected if ES can hold above that level and ideally above 1313 (dotted) which is the minor 1/2R off last week’s high. As I’ve been saying – time below 1307 would be the first sign of weakness. Nasdaq100 futures is showing relative strength (probably a positive sign) and pre-open has printed a new high for this rally.
First Level S/R = 1307 (30dy poc) SPY = 131.28
Support = ES 1271.50 (poc) SPY = 127.91
Sentiment: My version of the Rydex Assets Ratio was higher at 3.49 which is the highest reading since late July last year. This is a little concerning but for now price action/location is ST bullish and that’s more important.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Currently prints above 1.2811 and above the 3mnth poc at 1.30 with momentum up.
+ Dollar Index: pre-open Chart prints below the important 80.15 level. Momentum is down.
? TLT: currently the chart prints above the 10month poc at 117.88.
imo these charts have a slight positive bias for equities.
