Pre-open comment Wednesday 23rd February
Significant Selling was marked on Tuesday for the first time this month. As you know red-at-bottom have a high chance of being tested the following day.
The poc at 1318 (also the 8dyVAL) is the most important level to monitor. More time spent at or below this level would increase the chances of further weakness. Note that the next level of important poc support is at 1281.50.
Pre-open ES prints below 1318. This is weak location. Unless ES recovers back above this level the chances of further weakness are high. I currently place most importance on this analysis – rather than supporting charts etc.
First Level S/R = 1318 (minor poc)
Next Level Support = 1281.50
ST sentiment: unfortunately the Rydex data is unavailable??
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Still looking for a clear higher low or lower high with respect to the 1/2R support at 1.3580 last week but currently prints above this level.
+ UDX: Similarly, still looking for a clear higher low or lower high with respect to the 1/2R at 78.53 but currently prints below this level.
+ TLT: Reference level is 91.80 (6month poc). Chart currently weak below that level but has printed a 16day high today.
imo these charts have a positive bias for equities.
