posted 09.12 a.m. est
Pre-open comment Tuesday 7th January
Responsive Selling (red-at-top) was marked on Monday immediately after the Open. Only Significant Selling marked below the 1803.50 poc would be a concern in the LT but even so, new long trades are eliminated for me, at least until Significant Buying is marked again. If ES prints back to yesterday’s high at 1832.50 it would negate any ST negative implications of that imbalance.
First Level Resistance = 1835.50 (20dy poc)
First Level Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 60% (from 64%), Nasdaq 69% (from 72%), R2000 65% (from 70%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.09. The ratio reached 6.65 on 12/27 which is the highest ratio in my database and registered extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: Probed up into 102.85. the 10mn poc Resistance. Pre-open the chart prints below this level. If time were to be printed above that poc it would put the chart in a much stronger price location.
Gold GLD: Tested the June low early last week and has rallied from there but remains in a very weak price location.
Oil USO: Sharply lower last week breaking back below 34.13 (3yr poc) which puts it in a weak price location. Momentum is down.
Dollar Index: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level.
EURUSD: Recently broke out to a two year high but this was rejected and chart printed a 20day low on Monday. Momentum is negative and down.
