posted 9.17 a.m. et
Pre-open comment Monday 20th February
Last week I marked Significant Selling (Ineffective) once and Significant Buying twice.
See last Wednesday’s pre-open comment highlighted on the graphic.
Weekly Structure: Buyers active. The last six weeks have alternated between “Buyers Active” and “No Bias” and the last time I marked marked Sellers Active on this timeframe was w/e 11/25.
Chartprofit Market Timing System remained positive for all Major Market Charts.
Re the %Stocks>50dyma indicator – numbers above 50% are considered supportive but in fact numbers are currently above 80 which is overbought.
First Level Support = 1346 (min poc)
Major Support = 1307 (maj poc) SPY = 131.28
Sentiment: Except for Options Ratios we have to say that Sentiment indicators are registering bullish extremes. Historically this has indicated that upside is limited.
Last Wednesday my version of the Rydex Assets Ratio reached 4.86 which was the highest ratio I have in my database. The Ratio had fallen back by the end of the week to 3.8
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: chart found Support last week at the 3mnth poc at 1.30.
+ Dollar Index: chart found Resistance last week at the important 80.15 level.
+ TLT: Chart found Resistance last week at the 10month poc at 117.88.
imo these charts have a positive bias for equities for now. Important levels are close so this could change quickly.
