posted 08.50 a.m. est
Pre-open comment Thursday 13th February
Wednesday’s session generated a second Value Area entirely above 1792, the newly migrated 6mn poc. As long as ES holds above this level it is in a strong price location.
ES First Level Support = 1792.00 (6mn poc)
Stock index ETFs: Key chart is Small Caps ETF (IWM) which has been the relative under-performer recently although it was the strongest yesterday. The Key level is now 112.32, its 1/2R level off Jan high, and one hour pre-open IWM is printing below that price.
Stocks>50dyma numbers: Nyse 49% (from 48%), Nasdaq 48% (from 47%), R2000 40% (from 39%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.53. The 50dy low is at 4.75. VIX has fallen from 21.48 at the Feb market low to close at 14.30 yesterday.
Supporting Charts
Bonds TLT: printed a 6mn high recently but then reversed. Strong price location but Momentum (although positive) is down.
Gold GLD: Tested the June low in late December and has rallied from there. Still in a LT weak price location but Momentum is positive and now up.
Oil USO: Printing above the 3yr poc (34.13) in a strong price location. Momentum is positive but turned down on Tuesday.
Dollar Index: currently holding above the important 80.15 level with the maj poc at 79.76. Dollar Bulls would want to see chart hold this strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed. Currently prints above the 9mn poc (1.3524) so this chart has not yet broken down.
