Pre-open comment Tuesday 8th February
Dayframe: ES gapped higher on Monday and now prints above the 8dayVAH which comes in today at 1308.5 also hourly oscillators are indicating a loss of momentum on the intraday chart. Therefore if ES is unable to hold above 1316 early in the session I would expect some backing and filling. However this is a chart accelerating upwards and there is no sign of weakness yet so I expect Monday’s high will be tested at some point.
First Level Support = 1302.50 (minor 9dy poc)
Second Level Support = 1293 (minor 17dy poc)
More important Support = 1281.50 (3month poc)
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.05. This is historically still very high but down from 3.94 (on 01/19) which was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities)
from yesterday pre-open: >>imo these charts have a slight positive bias for equities, confirmed if EURUSD can print back above 1.3580<<
+ EURUSD: Back above 1.3580. If chart holds above that level it is in a strong position.
+ UDX: Still weak below resistance at 78.53.
+ TLT: Reference level is now 91.80. Chart currently weak below that level. New multi-month low on Monday.
imo these charts have a positive bias for equities.
