posted 08.15 a.m. est
Pre-open comment Friday 28th February
On Thursday I marked Aggressive Buying (green-at-top). Over the last fourteen days I have marked Significant Buying eight times and Significant Selling once (which was Ineffective). All four Value Areas this week have been printed above 1835.50 (6mn poc) which is strong price location, see previous highlighted comments. Buyers are still control of the dayframe – Effective Selling marked below 1835.50 would be first sign of weakness.
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Stocks>50dyma numbers: Nyse 66% (from 64%), Nasdaq 62% (from 60%), R2000 61% (from 59%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.49. Yesterday’s ratio at 7.71 is the highest in my database. Total assets that I follow are still relatively low.
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: Lower today, at a 40dy low. Currently prints just above Support at 79.76, the maj poc. Dollar Bulls would want to see this level hold.
EURUSD: Yesterday’s probe below 1.367, the 12mn poc, was rejected and chart is sharply higher today, at a 2mn high.
