Pre-open comment Thursday 23rd February
The ST bullish trend pattern whereby the minor poc migrates higher and then ES consolidates above it remains intact. Currently this would be put to the test if a Value Area gets printed below 1346.
And regarding Weekly Structure : the structure of every week since the November low has been classified as “Buyers Active” or “No Bias”. We are overdue a “Sellers Active” week and that would occur this week if ES closed Friday’s session below 1353.
First Level Support = 1346 (min poc)
Major Support = 1307 (maj poc) SPY = 131.28
Sentiment: Investor’s Intelligence (newsletters) poll reported Bulls down at 51.1 but remember last week’s 54.8% Bulls was the highest since May last year. Bears were up slightly to 26.6% (from 25.8). On Wednesday my version of the Rydex Assets Ratio was slightly lower at 4.95. Tuesday’s ratio at 5.14 was the highest ratio I have in my database.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: printed a 50dy high today. Chart found Support last week at the 3mnth poc at 1.30.
+ Dollar Index: chart found Resistance last week at the important 80.15 level but daily momentum is up.
+ TLT: Chart found Resistance last week at the 10month poc at 117.88.
imo these charts currently have a positive bias for equities.
