pre-open comment Friday 4th January
Thursday’s session generated a higher Value Area and Wednesday’s green-at-top high was exceeded. Buyers have been active this week and have successfully auctioned price higher. A SPY close today above Wednesday’s high at 146.15 would indicate Buyers active on the weekly timeframe for the first time in five weeks. There’s some disconcerting gaps up on the charts and ES is probing above the 6mn VAH which has previously stalled a rally but until Significant Sellers are marked the short side remains eliminated for me.
%Stocks>50dyma: Nyse 85% (>80 usually considered overbought) and Nasdaq 76%. Numbers >50 are supportive.
First Level Support = 1413 (3mn poc)
Second Level Support = 1406 (maj poc)
Price location: Strong.
Sentiment: my version of the Rydex Assets Ratio was higher at 3.86 – a 40day high.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
– EURUSD: is printing back below 1.3117, the 24mn poc. Momentum is down.
– Dollar Index: yesterday’s strength in the dollar has continued today with Dollar index printing above 80.15 which is the major Support/Resistance level for this chart. Momentum is up.
+ TLT: Pre-open has printed its lowest level since May and has probed the maj poc Support at 117.15. Momentum is down.
with dollar strong and bonds weak and it is difficult to imply a bias for equities.
