This week’s Chartprofit eBook is available to view
The DNL Reader is required to view the eBook.
If you do not have this program please download it here:
www.digitalwebbooks.com/reader/
*********** PRICE PERFORMANCE / LOCATION
ES analysis: Early last week ES found Resistance at 2081.00 (dashed), the minor poc, see previous comments. Mid week Aggressive Selling was marked (red-at-bottom). The 4mn poc migrated to 2070.00 and this is now First Level Resistance. Previously, that poc had been at 2035.00 and this could potentially provide Support – or more time could be printed here which may migrate the poc back to this level. I will wait for Significant Buying (green) to be marked before considering new longs.
First Level Resistance = 2070.00 (4mn poc)
First Level Support ? = 2035.00 (prev poc)
Major Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)
*********** BREADTH
Breadth: CP Market Timing System turned neutral for Nyse and Nasdaq and remained positive for R2000 and U.K.
Stocks>50dyma numbers: Nyse 60%, Nasdaq 59%, R2000 64%, UK 68%. Numbers >50 are supportive.
*********** SENTIMENT
Consensus Polls:
01/02: AAII (public poll). Seven weeks ago Bulls% reached 57.9% which was the highest since December 2010. This was just before the market corrected in December. This week Bulls% was slightly higher at 51.7% but is up from 38.7% just two weeks ago at the recnt price low. Bears% was also slightly higher at 19.3%. Eight weeks ago Bears% reached an extreme low reading of 15.1%.
01/02: Investors Intelligence. Bulls% was higher at 56.4%. Bears% was lower at 14.9%. The ratio of Bulls/Bears is currently 3.79 which is a very high level of optimism.
01/02: Market Vane (advisers) poll was unchanged at 63
01/02: The NAAIM Exposure Index: was higher again at 95.86, almost a twelve month high.
Mutual Fund Flow:
01/02: My version of the Rydex Assets Ratio ended the week at 12.07. In early December the ratio reached 13.73, the highest in the database.
01/02: lipperusfundflows reported Equity Fund (inc ETF) inflows of $1.8 Billion in the week to 31st December. Previous week’s $36.5 Billion was the largest weekly inflow on record.