posted 9.29 a.m. est
Pre-open comment Monday 31st January
Friday: Sellers Responded on Friday as the SP500 index opened above 1300 for the first time since Sept 2008. Very little time was spent above ES First Level Support at 1293 and Second Level Support at 1281.50 failed as well. Aggressive Selling was also marked and the value Area was lower and Wider with high Volume. Friday’s session marked the high and low of the week which means weekly structure was weak but the panicky decline did not break the low of the previous week. This was Effective Selling so Long Trades are eliminated until Significant Buyers are marked again.
The Chartprofit Market Timimg System is positive for all major Market Charts except Nasdaq100 and UK which are neutral.
For many days I was marking 1267.50 as poc support. It was slightly off the radar for pre-open Friday and wasn’t marked but the sell-off has brought it back into play and in fact that has been the exact low overnight. That was also the session low on 20th so is proven support.
First Level Support = 1267.50 (poc)
First Level Resistance = 1281.50 (poc)
ST Sentiment: My version of the Rydex Assets Ratio was up on Friday 3.83 This is historically still very high but down from last Wednesday’s ratio at 3.94 which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities)
+ EURUSD: Still strong above support
+ UDX: Still weak below resistance.
+ TLT: Closest reference level is the 2month poc at 92.56. Chart remains weak below that level.
imo these charts have a positive bias for equities.
