posted 09.00 a.m. est
Pre-open comment Monday 17th February
Friday closed above Mon-Wed Hi-Lo Range indicating Buyers Active for the second week on this timeframe. On Monday last week the six month poc migrated to 1792 followed by four Value Areas printed entirely above this level which is a bullish pattern. As long as ES holds above 1792 it is in a strong price location.
Dayframe: I have marked Significant Buying (green) seven times in the last eight days, and no Significant Selling. I have extended the poc level for each session across the following session and you can see Value Areas are being generated above the previous day’s poc which indicates the dayframe Buying is Effective.
ES First Level Support = 1792.00 (6mn poc)
Breadth has improved (see below). Last week Smallcaps (IWM) was the best performer of the four Stock Index ETFs which is usually a healthy sign. All four charts now print above their 1/2R off the recent high in a stronger price location with Momentum heading up.
Breadth: CP Market Timing System turned positive from negative for NYSE, turned neutral from negative for Nasdaq, R2000 and UK.
Stocks>50dyma numbers: Nyse 58%, Nasdaq 53%, R2000 49%, UK 70%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.45. The recent high for the ratio 7.50 in mid January which was the highest in my database.
Supporting Charts
Bonds TLT: printed a 6mn high recently but then reversed. Strong price location but Momentum (although positive) is down.
Gold GLD: Printed a 70day high on Friday. Momentum is positive and up but chart is still in a LT weak price location.
Oil USO: Printing above the 3yr poc (34.13) in a strong price location but is finding Resistance at 36.11, the 1/2R off September’s high.
Dollar Index: currently printing at the important 80.15 level, Dollar Bulls would want to see the chart hold this strong price location. Lowe Support at 79.76, the maj poc.
EURUSD: Held the 9mn poc (1.3524) recently and Mometum is up and positive.
