Pre-open comment Thursday 2nd February
ES negated Tuesday’s Responsive Selling by printing above 1318. Very little to add to Wednesday’s comments (highlighted on graphic). 1313 is the minor 1/2R off last week’s high.
First Level S/R = 1307 (35dy poc) SPY = 131.28
Support = ES 1271.50 (poc) SPY = 127.91
Sentiment: Investors Intelligence (newsletters) poll reported Bears up slightly to 29.8% . Possibly not expected by most observers. Almost 30% Bears is not typical of a top. My version of the Rydex Assets Ratio was down slightly to 3.24. Wednesday’s ratio at 3.57 was the highest reading since late July last year. This is a little concerning but price action/location is more important.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Currently prints above 1.2811 and above the 3mnth poc at 1.30 with momentum up.
+ Dollar Index: pre-open Chart prints below the important 80.15 level. Momentum is down.
– TLT: currently the chart prints above the 10month poc at 117.88 with momentum up.
imo these charts have a slight positive bias for equities.
