posted 08.05 a.m. est
Pre-open comment Thursday 23rd January
See Wednesday’s highlighted comments. Pattern of uptrend is 1) poc migrates higher, 2) new poc provides Support. That’s why I wrote yesterday re the 1835.50 poc, “ST Bulls would want to see intraday Support rather than Resistance in this area of price.” You can see from the chart that the poc was briefly probed but held during Wednesday’s session although ninety minutes pre-open ES prints below this level. I’m looking for evidence that the uptrend will continue and Significant Buying marked above 1835.50 would be a positive despite the current Sentiment readings.
First Level S/R = 1835.50 (4mn poc)
Stocks>50dyma numbers: Nyse 66%, Nasdaq 75%, R2000 70%. Numbers >50 are considered supportive. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged at 7.3. Last Thursday’s ratio at 7.5 is the highest ratio in my database. This has to be taken as a warning for the market.
Supporting Charts
Bonds TLT: is now printing above 102.85, the 10mn poc, in a stronger price location and printed a 50dy high on Wednesday. Technical Oscillators register overboght but Momentum is positive and up.
Gold GLD: Tested the June low late December and has rallied from there but remains in a weak price location.
Oil USO: Back above 34.13 (3yr poc) in stronger price location. Looking for higher low above that level (strong) or lower high below (weak).
Dollar Index: Printed a 46dy high on Tuesday and has completed a higher low pattern above 79.76, the maj poc. Strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed but currently rallied a little of the Support at 1.3524, the 9mn poc.
