posted 08.55 a.m. est
Pre-open comment Thursday 6th February
Monday’s red-at-bottom low was tested (by 0.25 pt) during Wednesday’s session, see yesterday’s highlighted comments. Strictly applying my rules I had to mark Responsive Buying (green-at-bottom) as I did on Friday but I make the same comment I did then: there are too many negatives to consider this any kind of indication of strength.
First Level Resistance = 1758.00 (prev poc and Dec low)
Stock index ETFs: All four ETFs have Momentum (PriceOsc) down and negative. Key charts/levels are DIA 152.70 = 12mn Support, QQQ 82.93 = 4mn Support.
Stocks>50dyma numbers: Nyse 28% (from 29%), Nasdaq 33% (from 36%), R2000 25% (from 28%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.47. The ratio fell from Monday’s 6.30 which showed some nervousness registering from the Rydex traders but not significant and historically still high.
Supporting Charts
Bonds TLT: printed a 6mn high on Monday. Technical Oscillators register overbought and Momentum (although positive) is down.
Gold GLD: Tested the June low late December and has rallied from there but remains in a weak price location.
Oil USO: Consolidating above the 3yr poc (34.13) in a stronger price location.
Dollar Index: currently holding above the important 80.15 level with the maj poc at 79.76. Strong price location if it holds.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed. Currently prints just above the 9mn poc (1.3524).
