Pre-open comment Monday 24th January
Early in Friday’s session there was a probe above the 8day VAH at 1285.50 (quoted pre-open) which was rejected. The 8day Value Area High and Low have provided consistently good reference levels in the ST recently so I will continue to monitor them. They are currently (dotted) at 1288 and 1274. The poc level at 1281.50 assumes more importance at the start of this week – the 55day poc migrated to this level at the end of last week. If ES can print some time above this level it will be back in a position of ST strength. Long trades are still eliminated for me though.
First Level S/R = 1281.50
Support1 = 1267.50 Support2 = 1254
Last week I marked one instance of Significant Buying and two instances of Significant Selling. The Chartprofit Market Timing System (weekly) remains positive (green) for all Major Market charts except ND100, R2000 and UK which have turned neutral (white).
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 3.32 which was down from Wednesday’s 3.94, the highest reading I have in my database).
Supporting Charts (+ or – or ? for equities)
+ EURUSD: Back in strong price location above 1.3087, the 1/2R off the June low. And today has printed a new 40dy high.
+ UDX: Currently prints back below 80.15, the major 1/2R. This is a weaker price location. On Friday dollar index printed a new 40dy low.
+ TLT: Closest reference level is the 2month poc at 92.56. Chart currently in weak location below that level.
imo these charts have a positive bias for equities.
