Pre-open comment Tuesday 25th January
Monday printed some time above the 1281.50 poc which is a positive in the ST but once again a probe above 8dayVAH at 1288 (dotted) capped the upside during the session. Overnight ES has been higher but pre-open is looking to test the 1281.50 poc.
Dayframe: Strictly applying my rules I had to mark Aggressive Buying on Monday, but only just. Strictly speaking this means that Short Trades are now eliminated for me and Longs are allowed but in fact I would want to see Significant Buying marked again above 1281.50 before allowing myself to initiate Long Trades.
First Level S/R = 1281.50
Support1 = 1267.50 Support2 = 1254
ST Sentiment: My version of the Rydex Assets Ratio was up slightly to 3.40. Last Wednesday’s ratio at 3.94 was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities)
+ EURUSD: Back in strong price location above 1.3087, the 1/2R off the June low.
+ UDX: Currently prints back below 80.15, the major 1/2R. This is a weaker price location.
+ TLT: Closest reference level is the 2month poc at 92.56. Chart currently in weak location below that level.
imo these charts have a positive bias for equities.
