posted 9.29 a.m. est
Pre-open comment Monday 14th February
Last week I marked four instances of Significant Buying and no Significant Selling. The Chartprofit Market Timimg System is positive for all major Market Charts. Friday’s session opened just below the 1315.50 (minor 1/2R) and immediately rallied back above it which was a sign of ST strength (see Friday’s comments). The session finished strong for the day and for the week which keeps the weekly structure bullish.
I’m projecting the mid 1330s as a price level which may well attract Responsive Selling (red-at-top). If I’m right about that then price will be very quickly rejected if it probes into that area of price. I am watching for that and wary of initiating new longs early in the week but until confirmed weakness is marked (Effective Selling) I am not willing to initiate shorts. However, if price is accepted between 1330-1340 I’d see that as indicating further strength.
First Level Support = 1318; 8dayVAH = 1322
Second Level Support = 1302.50
Third Level Support = 1293
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 3.31. This ratio is still historically high but down from 3.94 (on 01/19) which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Chart has broken the 1/2R support at 1.3580.
– UDX: broken above resistance at 78.53.
+ TLT: Reference level is now 91.80 (6month poc). Chart currently weak below that level.
imo these charts are mixed but have a negative bias for equities.
