posted 09.11 a.m. est
pre-open comment Tuesday 12th February
Monday’s session generated a narrow Value Area in the same area of price as Friday. Still no markable Response from the Sellers.
First Level Support = 1495 (40dy poc)
%Stocks>50dyma numbers: Nyse 83% and Nasdaq 75%. Numbers >50 are supportive. Numbers>80 usually considered overbought.
My version of the Rydex Assets Ratio was higher at 4.86, a 90day high. The highest reading since 28th September. The highest reading in my database at 5.64 was in early April 2012. Rydex Bull fund asssets are still relatively low as explained in a recent webcast. Ratio though, as you can see, is pushing higher – has rarely been above 5 in my database. This is a contrarian indicator.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ Bonds TLT: has spent the majority of the last nine trading days printing time below 117.15, the major poc, which is weak price location.
? Oil USO: has worked off some of its technical “overboughtness” and is currently holding above the 1/2R and poc Resistance around 34.17. Momentum indicator turning back up would be a positive for this chart.
– Gold GLD; Silver SLV: Gold GLD broken below the 161.0 major poc on Monday. This is weak price location. Silver SLV is a Key Chart. It rallied to 31.25, its major poc Resistance, twice in January and looks to have failed at that level. This chart, like GLD, is in a weak price location.
– Dollar Index: printed a 21dy high on Monday and today prints above but very close to 80.15, the major level. Price printing time above that level would put the chart back in a strong price location. Momentum is up.
? EURUSD: is today attempting to recover back above 1.3416 (1/2R off 2010 low).
All these charts print close to their major levels so things can change quickly in terms of price location strength/weakness. Watching TLT relative to 117.15, Dollar Index relative to 80.15 and EURUSD relative to 1.3416
