Pre-open comment Tuesday 22nd February
Chartprofit Market Timing system stayed positive for all major Market Charts. Weekly structure remains bullish with Tuesday on the low last week and Friday on the high.
At the start of last week I projected the mid 1330s as a price level which “may well attract Responsive Selling. If I’m right about that then price will be very quickly rejected if it probes into that area of price. I am watching for that and wary of initiating new longs early in the week but until confirmed weakness is marked (Effective Selling) I am not willing to initiate shorts.”
U.S. markets were closed on Monday but European futures (FTSE and DAX) showed Responsive and Aggressive Selling.
Dayframe: Therefore I will now be alert for any signs of weakness on the ES chart to short (not above 1327.50). Specifically if ES finds it difficult to print back above First Level S/R at 1327.50 early in the week and more importantly if time is spent below the 1318 poc I will anticipate further weakness.
First Level S/R = 1327.50 (minor 10day poc)
Support = 1318 (20day poc)
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Still looking for a clear higher low or lower high with respect to the 1/2R support at 1.3580 last week but currently prints above this level.
+ UDX: Similarly, still looking for a clear higher low or lower high with respect to the 1/2R at 78.53 but currently prints below
+ TLT: Reference level is now 91.80 (6month poc). Chart currently weak below that level.
imo these charts have a positive bias for equities.
