posted 09.09 a.m. est
Pre-open comment Friday 14th February
Dayframe: Over the last seven sessions I have marked Significant Buying six times and no Significant Selling. On Thursday Buyers Responded (green-at-bottom) to a weak open and later in the session Aggressive Buying was also marked (green-at-top). The session generated a third Value Area entirely above 1792, the 6mn poc. As long as ES holds above this level it is in a strong price location.
ES First Level Support = 1792.00 (6mn poc)
Longframe: Improving Breadth numbers (see below) and this week Smallcaps (IWM) has been 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 (although negative) heading up.
Stocks>50dyma numbers: Nyse 55% (from 49%), Nasdaq 53% (from 48%), R2000 48% (from 40%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.56 (from 5.53). Historically this is high and needs monitoring. The ratio reached 7.50 in mid January, 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: Pre-open today has printed a 3mn high. Momentum is positive and up but still in a LT weak price location.
Oil USO: Printing above the 3yr poc (34.13) in a strong price location. Momentum is positive but turned down on Tuesday.
Dollar Index: currently probing the important 80.15 level with the maj poc at 79.76. Dollar Bulls would want to see chart hold this strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed. Currently prints above the 9mn poc (1.3524) so this chart has not yet broken down. Mometum is up and now positive.
