Risk assets sold off sharply on Friday and again today.
Pre-open ES prints close to the 2000 level. At current levels I will not consider the long side unless Significant Buying is marked above 2041. Breadth numbers deteriorated sharply, see below.
First Level Resistance = 2041.00 (poc)
Market Charts: Nyse and R2000 stayed positive. Nasdaq turned neutral. UK turned positive – a surprising development probably due to the strong rally early last week.
Stocks>50dyma numbers: Nyse 37%, Nasdaq 37%, R2000 41%, UK 29%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.04. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: spiked higher on Friday and futures today are printing close to Friday’s high.
Dollar Index: currently printing above 95.25, the two year poc and above 96.21, the 1/2R off the December high in a strong price location.
Gold: last week GLD printed its highest level since August 2014.
Oil: USO was sharply lower on Friday printed its highest lbut remains in an LT uptrend as long as it holds above 10.78. Futures indicate a lower open today.
EURUSD: fell sharply on Friday breaking below 1.1313, the 4yr poc and is today printing below 1.11, the 1/2R off last year’s low in a weak price location.
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