pre-open comment Wednesday 13th February
Tuesday’s session generated a higher, narrower Value Area on increased Volume (although Volume has been below the 20dy average for the last three day). Aggressive Buying was marked (green-at-top). Still no markable Response from the Sellers.
Dayframe: 7day poc is at 1513. This is minor Support briefly tested at the low on Tuesday.
First Level Support = 1495 (40dy poc)
%Stocks>50dyma numbers: Nyse 83% and Nasdaq 75%. Numbers >50 are supportive. Numbers>80 usually considered overbought.
My version of the Rydex Assets Ratio was slightly lower at 4.73. Monday’s ratio at 4.86 was a 90day high. The highest reading in my database at 5.64 was in early April 2012. Ratio has rarely been above 5 in my database. This is a contrarian indicator.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ Bonds TLT: has spent the majority of the last ten trading days printing time below 117.15, the major poc, which is weak price location.
? Oil USO: has worked off some of its technical “overboughtness” and is currently holding above the 1/2R and poc Resistance around 34.17. Momentum indicator turning back up would be a positive for this chart.
– Gold GLD; Silver SLV: Gold GLD broken below the 161.0 major poc on Monday. This is weak price location. Silver SLV is a Key Chart. It rallied to 31.25, its major poc Resistance, twice in January and looks to have failed at that level. This chart, like GLD, is in a weak price location.
? Dollar Index: printed a 21dy high on Monday and today prints below 80.15, the major level but above 79.80, the 2yr poc.
+ EURUSD: has recovered back above 1.3416 (1/2R off 2010 low).
All these charts print close to their major levels so things can change quickly in terms of price location strength/weakness but imo have a slight positive bias for equities.
