posted 9.23 a.m. et
Pre-open comment Monday 23rd January
Last week ES closed at almost the high of the week. There’s been only one instance of Significant Selling in 21 days.
Chartprofit Market Timing System is positive for all Major Market Charts.
Re the %Stocks>50dyma indicator – numbers above 50% are considered supportive but in fact numbers for all Major Market Charts are above 80 which is overbought.
SPY RSI(14) reached its highest reading since the May 2011 top. However, with Buyers Active and chart finding Support at the first, obvious levels we have to assume higher and if ES can print time above 1315 (see below) it would confirm further strength. Overnight high is 1314.
Dayframe: 8day poc at 1307 could become intraday Support/Resistance and provide clue re early direction at the start of the week.
Potential level of Resistance around 1315 (previous poc).
First Level Support = ES 1286.50 (min poc)
Second Level Support = ES 1271.50 (20dy poc) SPY = 127.91
Sentiment: My version of the Rydex Assets Ratio ended the week at 2.94. The ratio on Friday 6th Jan reached 3.0 which was a five month high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Currently prints above the 1.2811 poc with momentum up.
+ Dollar Index: Chart currently prints back below the important 80.15 Support (as of today). Momentum is down.
+ TLT: on Friday the chart broke the 10month poc Support at 117.88.
imo these charts have a positive bias for equities.
