Pre-open comment Tuesday 3rd February.
Monday’s session generated a lower/overlapping Value Area but a strong close. The 4mn poc remains at 2033.50 and has not yet migrated lower so there is no obvious minor Support. Pre-open ES has printed as high as 2028.00. Unless the poc moves I will wait for Significant Buying to be marked above 2033.50 before considering new longs.
First Level Resistance = 2033.50 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 200.11 (8mn poc)
Stocks>50dyma numbers: Nyse 45% (from 38%), Nasdaq 40% (from 36%), R2000 42% (from 36%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 10.80. In early December the ratio reached 13.73, the highest in the database.
Supporting Charts:
Bonds TLT: recently exceeded the 2012 high on Friday printed a new high.
Dollar Index: on 01/23 printed its highest level since 2003 and is consolidating price close to that level.
Gold GLD: rallied strongly last month and probed the Resistance at 124.12, the major poc, but has not printed time above that level.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and on Thursday printed a new low. Friday was a strong day and chart is higher this week.
EURUSD: has been declining since May last year and has reached major 1/2R Support at 1.1241. Currently holding that level.
