posted 08.40 a.m. est
Pre-open comment Friday 24th January
See previous highlighted comments. Thursday’s session generated a Value Area entirely below the 1835.50 poc which isn’t encouraging. As the 4mn poc recently migrated up to this price, Significant Selling marked below this level would be a clear indicator of weakness. Bulls would hope for a quick recovery back above the poc and the Stocks>50dyma numbers holding above 50. Ninety minutes pre-open ES had printed as low as 1808 with potential Support at 1803, the previous 4mn poc.
First Level Resistance = 1835.50 (4mn poc)
First Level Support = 1803.50 (previously 4mn poc)
Stocks>50dyma numbers: Nyse 60% (from 66%), Nasdaq 71% (from 75%), R2000 66% (from 70%). Numbers >50 are considered supportive. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 7.2. Last Thursday’s ratio at 7.5 is the highest ratio in my database. This has to be taken as a warning for the market.
Supporting Charts
Bonds TLT: is now printing above 102.85, the 10mn poc, in a stronger price location and printed a 57dy high pre-open today. Technical Oscillators register overboght but 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: Back above 34.13 (3yr poc) in stronger price location. Looking for higher low above that level (strong) or lower high below (weak).
Dollar Index: Printed a 46dy high on Tuesday but this week has negated the higher low pattern. Today’s low is currently the important 80.15 level with the maj poc at 79.76. Strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed but currently rallied a little of the Support at 1.3524, the 9mn poc.
