posted 7.30 a.m. et
Pre-open comment Friday 10th February
ES continued to grind higher, generating another overlapping/higher Value Area. Significant Sellers still absent here. See Sentiment comments below.
Dayframe: Average Hi-Lo weekly range is above 50 and this week’s range so far is less than half that so range extension is very possible. Low of the week is 1330.25, High of the week is 1352.75.
First Level Resistance = 1344.50 (minor 10dy poc)
First Level Support = 1322.50 (min poc)
Major Support = 1307 (maj poc) SPY = 131.28
Sentiment: Sentiment is reaching extremes.
AAII (public) poll reported Bulls up at 51.6% which is the highest for more than a year. The Nett at 31.4 is slightly less than the recent peak at 31.9, w/e 02/10.
Lipperusfundflows reported Equity Fund Inflows of $6.4 Bil in the week to 8th Feb. That lifts the 4wk Flow to 17.81 Bil which is the highest for more than a year.
My version of the Rydex Assets Ratio has now reached 4.05. There has only been seven previous readings above 4 and they came in late April / early May last year as the market topped.
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.
