posted 08.33 a.m. est
We have seen five consecutive higher Value Areas with Significant Buying marked four times. Buyers are in control of the dayframe. On Tuesday Buyers Reacted (green-at-bottom) to a brief opportunity when Friday’s Value Area low was tested. As long as ES holds above 2033.50 (4mn poc) it is in a strong price location.
First Level Support = 2033.50 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 200.11 (8mn poc)
All four major stock index ETFs have positive and increasing Price Momentum (PriceOsc).
Stocks>50dyma numbers: Nyse 69% (unch), Nasdaq 66% (from 62%), R2000 64% (from 62%). Numbers >50 are supportive.
Sentiment: SPY closed higher for the fifth day and my version of the Rydex Assets Ratio was lower at 10.04 which is a seventeen day low. Bear fund assets that I follow hit a 40day high. Just to remind you that the Rydex indicators are contrarian.
Supporting Charts:
Bonds TLT: reached a new high at the end of January but lower this month. Momentum (PriceOsc) is now negative and chart printed a 32day low on Tuesday.
Dollar Index: on 01/23 printed its highest level since 2003. In recent webcasts I have talked about the possibility of a turn here for the dollar. Watching levels on EURUSD (below) and AUDUSD in particular.
Gold GLD: since probing the Resistance at 124.12 (major poc) three weeks ago, GLD has given back nearly all of last month’s strong gains and printed a 29day low on Tuesday.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and fell sharply. Has rallied this month. Momentum (PriceOsc) is currently holding above zero.
EURUSD: has been declining since May last year and has reached major 1/2R Support at 1.1241. Has held above that level for sixteen days now but prints close to that level.
