posted 09.26 a.m. est
Pre-open comment Wednesday 22nd January
I wrote pre-open yesteday that “Currently ES is finding value at 1835.50” and you can see that during Tuesday’s session the most time (poc) was spent at this price. In fact enough was spent there to lift the 4mn poc to this level (see highlighted comments from 15th Jan). Pre-open today ES is printing close to 1835.50. Significant Buying marked above this level (and despite current Sentiment readings) would suggest development to 1865. However, because the 4mn poc just migrated to 1835.50 Significant Selling marked below this level would carry more importance. ST Bulls would l want to see intraday Support rather than Resistance in this area of price. The next imbalance will most likely be the clue to ST price direction.
First Level S/R = 1835.50 (4mn poc)
Stocks>50dyma numbers: Nyse 64%, Nasdaq 74%, R2000 70%. Numbers >50 are considered supportive. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.3. Last Thursday’s ratio at 7.5 is the highest ratio in my database. This has be taken as a warning for the market.
Supporting Charts
Bonds TLT: is now printing above 102.85, the 10mn poc, in a stronger price location and printed a 49dy high on Tuesday. Momentum is positive and up.
Gold GLD: Tested the June low late December and has rallied from there but remains in a weak price location.
Oil USO: Has rallied to print back at 34.13 (3yr poc). Price above this level would be stronger price location.
Dollar Index: Printed a 46dy high on Tuesday and has completed a higher low pattern above 79.76, the maj poc. Strong price location.
EURUSD: Recently broke out to a two year high but this was rejected and price reversed but currently finding Support at 1.3524, the 9mn poc.
