Pre-open comment Monday 13th January
Last week I marked Significant Buying once and Significant Selling once. During Thursday’s session, and again on Friday, the poc at 1835.50 was probed but as of pre-open today no significant time has been printed above this Resistance. If price can print time above this level (and despite current Sentiment readings) it would suggest development up to 1865. 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)
Breadth: The CP Market Timing system remained positive for Nyse and Nasdaq, turned neutral (from positive) for R2000 and turned positive (from neutral) for UK.
Stocks>50dyma numbers: Nyse 64%, Nasdaq 72%, R2000 66%, UK 76%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.16. The ratio reached 6.65 on 12/27 which is the highest ratio in my database and registered extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: is now printing above 102.85, the 10mn poc, in a at 102.85 in a stronger price location.
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. Printed a 30day high last Thursday above 80.15.
EURUSD: Recently broke out to a two year high but this was rejected and chart printed a 23day low last Thursday. Momentum is negative and down. Support is a little lower at 1.3524, the 9mn poc.
