Pre-open comment Friday 17th January
Thursday’s session generated another Value Area printed entirely above the 1835.50 poc Support which held (see chart). One hour pre-open chart prints close to that level but only Significant Selling marked below 1803.50 (4mn poc) would be a concern in the LT.
First Level S/R = 1835.50 (30dy poc)
Second Level Support = 1803.50 (4mn poc)
Stock Index ETFs: Momentum is positive but down for all four major ETFs.
Stocks>50dyma numbers: Nyse 65% (unch), Nasdaq 73% (from 74%), R2000 68% (unch). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 7.5 which is the highest in my database. This pushes the optimism to new extremes and has be taken as a warning for the market.
Supporting Charts UNCHANGED
Bonds TLT: is now printing above 102.85, the 10mn poc, in a stronger price location. Momentum is positive and up.
Gold GLD: Tested the June low late December and has rallied from there but remains in a weak price location.
Oil USO: Last week 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.
EURUSD: Recently broke out to a two year high but this was rejected and chart printed a 23day low last week. Still in a LT strong price location above 1.3524, the 9mn poc.
