posted 09.20 a.m. est
Pre-open comment Wednesday 26th February
Both Monday’s and Tuesday’s Value Area were generated entirely above 1835.50, the 6mn poc, see previous highlighted comments.
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Stocks>50dyma numbers: Nyse 61% (from 62%), Nasdaq 58% (from 59%), R2000 55% (from 57%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.59. 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 although it is holding a strong price location. Momentum is negative but turned up on Tuesday.
Gold GLD: Now printing in a stronger price location above 127.20, the 18mn poc. Momentum is positive and up but price is technically overbought, e.g. RSI(14) >70.
Oil USO: Printing above 36.11, the 1/2R off September’s high, in a strong price location and on Monday 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.
