posted 9.12 a.m. est
pre-open comment Friday 25th January
Thursday’s session generated a higher, wider Value Area on increased Volume. Significant Sellers have not been marked for seventeen days.
Dayframe: The very minor (9day) poc migrated to 1487 on Thursday and is the best reference level for Support intraday.
First Level Support = 1453 (4mn poc)
%Stocks>50dyma numbers: Nyse 91% and Nasdaq 81%. Numbers >50 are supportive. Numbers>80 usually considered overbought.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 3.64. The ratio has fallen since it reached a 69day high of 4.63 on 01/15 – meanwhile the market has been climbing. Usually, if the market is accelerating up into a top, the ratio nearly always follows it higher and hits a multi-week high itself. More on current Sentiment in the webcast today.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
The following KEY Charts are printing very close to useful reference levels. Monitoring price relative to these levels should give us a good idea about the markets current appetite for risk.
? Bonds TLT: Seems to have found Support just above the major poc (117.15). Momentum is still negative but up. Pre-open prints below 119.00, the very minor 1/2R off recent low.
? Commodities: Oil USO is now printing above the 1/2R and poc Resistance around 34.17. Price holding above this level indicates further strength. Gold GLD was lower on Thursday but may find Support at the 161 major poc. Chart below this level is weak price location.
+ Dollar Index: pre-open is printing back below 79.80.
? EURUSD: is today printing above the Resistance at 1.3416 (1/2R off 2010 low). Time printed above this level would be a positive for this chart and equities.
