posted 08.20 a.m. est
Pre-open comment Friday 10th January
Responsive Buying (green-at-bottom) was marked on Thursday. New short trades are now eliminated for me, at least until Significant Selling is marked again.
I wrote yesterday that the 25day poc was an important level to monitor (see highlighted comments). More time was spent in this area during Thursday’s session and the poc migrated back to 1835.50. If price can now hold above this level (and despite current Sentiment readings) it would suggest development up to 1865. Only Significant Selling marked below 1803.50 (4mn poc) would be a concern in the LT.
First Level Support = 1835.50 (25dy poc)
Second Level Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 61% (unchanged), Nasdaq 71% (from 72%), R2000 66% (from 67%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 5.13. The ratio reached 6.65 on 12/27 which is the highest ratio in my database and registered extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: This week chart has probed the 10mn poc at 102.85 and yesterday closed at a 10day high just above that Resistance. If time were to be printed above that poc it would put the chart in a stronger price location.
Gold GLD: Tested the June low early last week and has rallied from there but remains in a very weak price location.
Oil USO: On Thursday printed its lowest price since May. In a weak price location below 34.13 (3yr poc). Momentum is negative and down.
Dollar Index: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level. Printed a 30day high on Thursday above 80.15.
EURUSD: Recently broke out to a two year high but this was rejected and chart printed a 23day low on Thursday. Momentum is negative and down. Support is a little lower at 1.3524, the 8mn poc.
