posted 09.14 a.m. est
Pre-open comment Tuesday 28th January
see yesterday’s comments. Friday’s (red-at-bottom) low was tested on Monday. No Significant Buying marked for eight days.
Stock index ETFs Key charts: SPY has broken below 179.39, its 4mn poc. IWM is currently printing just above 110.87, its 4mn poc. If IWM breaks below 110.87 it would signal further weakness.
First Level Resistance = 1835.50 (4mn poc)
First Level Support = 1758.00 (prev poc and Dec low)
Breadth: The CP Market Timing system turned negative (from neutral) for Nyse, turned neutral (from positive) for Nasdaq and remained neutral for R2000. UK turned negative (from positive).
Stocks>50dyma numbers: Nyse 36%, Nasdaq 50%, R2000 43%. Numbers >50 are considered supportive. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged at 6.84. On 16th Jan it reached 7.5 which is the highest ratio in my database, registering extreme optimism and a warning for the market.
Supporting Charts
Bonds TLT: printed a 58dy high on Monday. Technical Oscillators register overbought but 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: Printing almost at the 3yr poc (34.13). Looking for higher low above that level (strong) or lower high below (weak).
Dollar Index: currently holding just above the important 80.15 level with the maj poc at 79.76. Strong price location if it holds.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed but rallied a little of the Support at 1.3524, the 9mn poc.
