S&P 500 emini pre-open Friday 23rd January

posted 09.12 a.m. est

See previous highlighted comments. As anticipated, the 4mn poc has moved back to a higher level – this being 2033.50. As long as ES holds above this level it is in a strong price location. I marked both Reactive and Aggressive Buying on Thursday so Significant Buying has been marked four times in the last four days. Breadth numbers are improving, see below, and Rydex traders became more bearish on a strong up day (contrarian) see below.

First Level Support = 2033.50 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)

Stocks>50dyma numbers: Nyse 53% (from 42%), Nasdaq 47% (from 38%), R2000 51% (from 39%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 8.99, the first time it has been below 9 since October. This is a 57day low.

Supporting Charts:
Bonds TLT: recently exceeded the 2012 high and printed a new high this week.
Dollar Index: has today printed its highest level since 2003.
Gold GLD: has rallied strongly this month and this week has probed above 124.12, the major poc on the daily chart. Time printed above this level would be strong price location.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and printed a new low last week. Currently prints close to that low.
EURUSD: probed the 4mn Time Resistance at 1.2475 last month and is lower from there, printing below 1.2300, the maj poc, and has today printed its lowest level since 2003.