Pre-open comment Tuesday 1st February
Although the stats are not as strong for a Friday (I have mentioned this before ) red-at-bottom lows are usually tested on the following day. Friday’s low was tested overnight Sunday but there was no follow through in Monday’s session below the 1267.50 overnight low (this was poc support).
I did not mark Significant Buyers on Monday but ES put in a very strong performance. Now back above the most important level at 1281.50 ES is now printing higher still and if it can hold above that First Level Support it is in a strong price location. If Friday’s Responsive Selling Imbalance (red-at-top) it will confirm strength in the ST.
Note: I will not initiate new longs until green is marked again.
First Level S/R = 1293 (minor 13dy poc)
First Level Support = 1281.50 (3month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down on Monday to 3.18. This is historically still very high but down from ratio (on 01/19) at 3.94 which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities)
+ EURUSD: Still strong above support. New 45day high today.
+ UDX: Still weak below resistance. New 45day low today.
+ TLT: Closest reference level is the 2month poc at 92.56. Chart remains weak below that level and could easily break to a new multi-month low.
imo these charts have a positive bias for equities.
