Pre-open comment Wednesday 16th February
Another narrow Value Area on Tuesday but consolidating the higher level Friday advanced to last week. 1326.50 is the minor (3day poc) and becomes First Level Support for this week. Overnight ES has printed as high as 1332.75 and approaches the level where I suspect Significant Sellers are likely to respond (see Friday’s comments).
First Level Support = 1326.50 (minor) 8dayVAH = 1323
Second Level Support = 1318 (18day poc)
ST Sentiment: My version of the Rydex Assets Ratio was higher at 3.62. This ratio is historically very high. 3.94 (on 01/19) was the highest reading I have in my database. Note: If I include Money Market assets in the calculation, i.e. Bull Assets / (Bear Assets + Money Market assets), then the ratio hit a new high yesterday.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Chart has broken the 1/2R support at 1.3580.
? UDX: waiting for clear higher low or lower high with respect to the 1/2R at 78.53.
+ TLT: Reference level is now 91.80 (6month poc). Chart currently weak below that level.
imo these charts are mixed and have no obvious bias for equities.
