Pre-open comment Monday 6th February
Major poc migrated up to 1307 last week. This is now an important level to monitor. In the LT as long as ES holds above this level I would expect higher. The Chartprofit Market Timing System remained positive for all Major Market Charts. Friday closed above the high of Mon-Wed Range which indicates Buyers Active on the weekly timeframe.
First Level S/R = 1322.5 (min poc)
Second Level S/R = 1307 (maj poc) SPY = 131.28
Sentiment: Early last week my version of the Rydex Assets Ratio reached 3.57 which was the highest reading since late July last year. This is a little concerning in the LT but price action/location is more important. In the ST it is worth noting that the market was strong to the end of the week but the ratio fell to finish the week at 3.12.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
+ EURUSD: Currently prints above 1.2811 and above the 3mnth poc at 1.30.
+ Dollar Index: Chart prints below the important 80.15 level.
+ TLT: Chart is printing back below the 10month poc at 117.88.
imo these charts have a positive bias for equities.
