Pre-open comment Thursday 9th February
Note: this was written in the early hours of the morning EST.
Since the major poc migrated higher to 1307 ES has moved quickly higher.
In the dayframe as long as ES holds above First Level Support at 1322.50 or until Effective Selling is marked I have to assume higher despite the overbought readings and concerns about the Sentiment readings.
First Level Support = 1322.5 (min poc)
Second Level Support = 1307 (maj poc) SPY = 131.28
Sentiment: Investors Intelligence (newsletters) poll reported Bulls at 52.1%, up from 48.9%. That’s the highest Bulls% since early May last year. Bears at 28.7% is a higher number than you would usually see at a market top. My version of the Rydex Assets Ratio was up at 3.87 which the highest reading since mid May last year. At the May price high the ratio peaked at 4.57 which was the highest ratio for years.
Once again, surprisingly, the ISEE (equity-only) Index was lower yesterday at 152.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
+ EURUSD: Currently consolidating above the 3mnth poc at 1.30.
+ Dollar Index: Chart prints below the important 80.15 level.
+ TLT: Chart is printing below the 10month poc at 117.88.
imo these charts currently have a positive bias for equities.
