posted 9.13 a.m. et
Pre-open comment Thursday 26th January
Following Tuesday’s Responsive Buying the Buyers were active again on Wednesday, Aggressively auctioning ES above the Resistance around the 1315 level. Despite the overbought readings and overly bullish sentiment I have to assume higher.
The Bullish pattern whereby….1) minor poc migrates higher 2) Chart tests down into that level and rejects it and 3) chart moves higher…. is intact. This confirms that Buyers are in control of the dayframe. Time below 1307 would be first sign of weakness. Note I have not marked Aggressive Selling since 17th December.
First Level Support = 1307 (20dy poc)
Second Level Support = ES 1271.50 (poc) SPY = 127.91
Sentiment: My version of the Rydex Assets Ratio was lower at 2.94. Wednesday’s ratio at 3.38 was the highest reading for more than five months.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Currently prints above the 1.2811 poc with momentum up.
+ Dollar Index: pre-open Chart prints below the important 80.15 level. Momentum is down.
+ TLT: currently the chart prints below the 10month poc at 117.88.
imo these charts have a positive bias for equities.
