S&P 500 emini pre-open Wednesday 18th February

S&P 500 emini pre-open Wednesday 18th February

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.