posted 9.29 a.m. et
Pre-open comment Wedesday 11th January
On Monday ES gapped higher and consolidated during the day session. Pre-open today ES has printed as low as 1279.25. As long as ES holds above 1271.50 it is in a strong price location. Significant Sellers have not been marked for twelve days. EURUSD is the key chart, see below.
Dayframe: If ES fails to rally early in the session and instead prints time in low 80s I would expect the gap to be filled.
First Level Support = ES 1271.50 SPY = 127.91
Second Level Support = ES 1256 (poc) SPY = 126.00
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 2.69 (from 2.56). Friday’s ratio at 3.0 which was a five month high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Chart printed a new 15month low on Monday at 1.2664. Today’s low is just above that level.
– Dollar Index: printing above the 80.15 (1/2R off the 2008 low) and reached a new 12month high on Monday. Momentum is down.
? TLT:on Tuesday the chart once again held the 10month poc Support at 117.88. Momentum is down.
imo these charts have a negative bias for equities but momentum indicator suggests this could change.
