Pre-open comment Tuesday 21st January
Strictly applying my rules I had to mark Aggressive Selling (red-at-bottom) on Friday. If ES prints 1840 or higher during today’s session it will negate the ST negative implications of that imbalance and as of two hours pre-open today has printed as high as 1842.25. Currently ES is finding value at 1835.50 (35dy poc) and time printed above this level (and despite current Sentiment readings) would suggest development to 1865. Only Significant Selling marked below 1803.50 (4mn poc) would be a concern in the LT.
First Level S/R = 1835.50 (35dy poc)
Second Level Support = 1803.50 (4mn poc)
Stock Index ETFs: Momentum is positive but down for all four major ETFs.
Breadth: The CP Market Timing system turned neutral (from positive) for Nyse, remained positive for Nasdaq and remained neutral for R2000. UK remained positive.
Stocks>50dyma numbers: Nyse 63%, Nasdaq 72%, R2000 66%, UK 77% Numbers >50 are considered supportive. (from 74%), R2000 68% (unch). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.37. Thursday’s ratio at 7.5 is the highest ratio in my database. This pushes optimism to new extremes and has be taken as a warning for the market.
Supporting Charts UNCHANGED
Bonds TLT: is now printing above 102.85, the 10mn poc, in a stronger price location and printed a 48dy high on Friday. Momentum is positive and up.
Gold GLD: Tested the June low late December and has rallied from there but remains in a weak price location.
Oil USO: On 01/09 printed its lowest price since May. In a weak price location below 34.13 (3yr poc). Momentum is negative and down.
Dollar Index: Printed a 45dy high on Friday and has completed a higher low pattern above 79.76, the maj poc. Strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed. As I write is printing at 1.3524, the 9mn poc Support, at a 35day low.
