posted 08.02 a.m. est
Pre-open comment Thursday 2nd January
Tuesday’s session generated a higher, wider Value Area. Aggressive Buying (green-at-top) was marked. Significant Selling has not been marked for thirteen days. In the longer term timeframe as long as ES holds above the 4mn poc at 1803.50 it is in a strong price location.
Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 71% (from 68%), Nasdaq 73% (from 72%), R2000 72% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.88. Last week the ratio reacheds 6.65 which is the highest ratio in my database. This indicator is registering extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: The 10mn poc recently migrated down to 102.85. Chart currently prints below this poc which is very weak price location. On Tuesday chart hit its lowest level since Aug 2011.
Gold GLD: Tested the June low on Tuesday and remains in a very weak price location.
Oil USO: Has printed a higher low above 34.13, (3yr poc). Strong price location. Momentum (although positive) is down.
Dollar Index: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level.
EURUSD: Printed a two year high last week. Momentum (although positive) is down.
