posted 08.22 a.m. est
Pre-open comment Wednesday 12th February
I marked Aggressive Buying (green-at-top) again on Tuesday. The session generated a Value Area entirely above 1792, the newly migrated 6mn poc. As long as ES holds above this level it is in a strong price location.
ES First Level Support = 1792.00 (6mn poc)
Stock index ETFs: Small Caps ETF (IWM) is has been the relative under-performer and Bulls would want to see that change. It is now printing above 110.87, its key poc level confirming the ST strong price location of SPY, DIA and QQQ. These three charts now print above their 1/2R levels off Jan high but IWM found Resistance there yesterday (112.32) and price above that that level would be the next positive, as would Breadth Numbers improving (see below).
Stocks>50dyma numbers: Nyse 48% (from 40%), Nasdaq 47% (from 44%), R2000 39% (from 34%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.95, close to the 50dy low at 4.75. VIX has fallen from 21.48 at the Feb market low to close at 14.51 yesterday.
Supporting Charts
Bonds TLT: printed a 6mn high recently but then reversed. Strong price location but Momentum (although positive) is down.
Gold GLD: Tested the June low in late December and has rallied from there. Still in a weak price location but Momentum is positive and now up.
Oil USO: Printing above the 3yr poc (34.13) in a strong price location. Momentum is positive but turned down on Tuesday.
Dollar Index: currently holding above the important 80.15 level with the maj poc at 79.76. Strong price location if it holds.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed. Currently prints above the 9mn poc (1.3524) so this chart has not yet broken down.
