posted 07.52 a.m. est
Pre-open comment Monday 24th February
Last week Aggressive (but Ineffective) Selling was marked on Wednesday with Buyers Responding immediately on Thursday to a test of that red-at-bottom low. ES was auctioned quickly back to the 1835.50 poc and two hours pre-open today it prints above that level. Buyers are still in control of the dayframe and in the last three weeks I have marked Significant Buying eleven times and Significant Selling once. The first sign of LT weakness would be time below 1792.00. Time above 1835.50 would indicate higher – monitor price relative to this level for clue re ST direction at the start of this week.
First Level S/R = 1835.50 (6mn poc)
Support = 1792.00
Breadth: CP Market Timing System stayed positive for NYSE, turned positive (from neutral) for Nasdaq and UK and remained neutral for R2000.
Stocks>50dyma numbers: Nyse 58%, Nasdaq 56%, R2000 53%, UK 74%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.87 which is historically high. The recent high for the ratio at 7.50 in mid January was the highest in my database.
Supporting Charts
Bonds TLT: printed a 6mn high recently but then reversed. Strong price location but Momentum is down and now negative.
Gold GLD: The 18mn poc migrated to 127.20. GLD closed the week just above that level which is strong price location if it holds. Momentum is positive and up.
Oil USO: Printing above 36.11, the 1/2R off September’s high, in an even stronger price location and last week reached its highest level since mid-October.
Dollar Index: currently printing at the important 80.15 level. Dollar Bulls would want to see the chart hold 79.76, the maj poc.
EURUSD: Printing above 1.367 (12mn poc) in a strong price location with Momentum up and positive.
