posted 08.57 a.m. est
pre-open comment Tuesday 29th January
Monday generated a narrow, inside, Value Area on reduced Volume. Significant Sellers are still absent (for nineteen days) and recently any intraday weakness has been Supported at the previous day’s poc (see 22nd, 24th, 25th). But there’s been no Significant Buying marked for three days either so Sellers may have another chance to change that pattern but until they do Buyers are still in control.
%Stocks>50dyma numbers: Nyse 89% and Nasdaq 79%. Numbers >50 are supportive. Numbers>80 usually consideed overbought.
Dayframe: The very minor (11day) poc migrated to 1497 (dashed) and is the best reference level for Support/Resistance intraday.
First Level Support = 1453 (4mn poc)
Sentiment: My version of the Rydex Assets Ratio was up sharply on Monday to 4.40. we need to watch this closely (see eBook). The recent high from earlier this month was at 4.63 and a reading above that would be a four month high. The highest reading in my database at 5.64 was in early April 2012.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
The following KEY Charts are printing very close to useful reference levels. Monitoring price relative to these levels should give us a good idea about the markets current appetite for risk.
? Bonds TLT: On Monday tested the major poc Support at 117.15. Pre-open today is printing just above that level. Time below this level is weak price location and imo would be a positive for equities.
? Commodities: Oil USO is now printing above the 1/2R and poc Resistance around 34.17. Price holding above this level indicates further strength. Pre-open Gold GLD is printing at the 161.0 major poc. Chart below this level is weak price location.
+ Dollar Index: pre-open is printing just below 79.80, the 2yr poc.
? EURUSD: on Friday chart cleared the Resistance at 1.3416 (1/2R off 2010 low) and has held above that level. Time printed above that 1/2R would be a positive for this chart and equities.
