posted 08.37 a.m. est
Pre-open comment Thursday 27th February
Wednesday’s Value Area was the third generated entirely above 1835.50, the 6mn poc which is strong price location if it holds. No Significant Buying has been marked for four days but Sellers have not made a markable appearance either. Monitoring price closely relative to the 1835.50 Support. Breadth numbers are supportive but Bonds and Dollar are indicating ST strength and see Rydex data below. Hints of change here?
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Stocks>50dyma numbers: Nyse 64% (from 61%), Nasdaq 60% (from 58%), R2000 59% (from 55%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio spiked up to 7.71 which is the highest in my database. Total assets that I follow are still relatively low and this extreme reading is largely due to Bear Assets that I follow falling close to their lowest level in my database. Even so, I take this as a warning for the market.
Supporting Charts
Bonds TLT: printed a 6mn high recently and 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.
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 back above the important 80.15 level. Dollar Bulls would want to see the chart hold 79.76, the maj poc.
EURUSD: currently printing just below 1.367 (12mn poc). This is a weaker price location.
