Pre-open comment Thursday 24th February
Wednesday’s session high came in early at the previous day’s poc (dotted). This pattern confirms Sellers in control of the dayframe. Wednesday’s poc is at 1207 and pre-open ES has probed up into that level. The Aggressive Selling marked on Tuesday (red-at-bottom) means that long trades are eliminated for me – at least until Significant Buying (green) is marked again.
In yesterday’s webcast I showed the ES chart with support at 1293. Overnight the ES low has been 1293.50. Should it be reached, 1318 is the obvious level of resistance being both the minor poc and the minor 1/2R off last week’s high.
%Stocks>50dyma NewYork = 59%; %Stocks>50dyma Nasdaq = 48%
First Level Resistance = 1318.00
Support 1 = 1293.00 Support 2 = 1281.50
ST sentiment: My version of the Rydex ratio was up to 16day high on Tuesday but fell back to 3.29 on Wednesday (Bull fund assets I follow were down 8%). This is still very high historically.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Chart prints above the 1/2R at 1.3580.
+ UDX: Chart in weak position below the 1/2R at 78.53.
? TLT: Reference level is 91.80 (6month poc). TLT pre-open has printed a 17day high at that level.
imo these charts have a positive bias for equities – TLT chart interesting today.
