pre-open comment Wednesday 30th January
Aggressive Buying was marked again on Tuesday. A higher, wider Value Area on increased Volume was generated. ES continues to auction higher in search of a Response from the Sellers who have now been absent for twenty days.
%Stocks>50dyma numbers: Nyse 88% and Nasdaq 78%. Numbers >50 are supportive. Numbers>80 usually consideed overbought.
Dayframe: The very minor (now 17day) poc at 1497 (dashed) is the best reference level for ST Support/Resistance intraday. Pre-open ES has printed as low as 1498.50.
First Level LT Support = 1453 (4mn poc)
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 4.37 after Monday’s sharp rise. The recent high from earlier this month was at 4.63 and a reading above that would be a four month high. The highest reading in my database at 5.64 was in early April 2012.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
The following KEY Charts are printing very close to useful reference levels. Monitoring price relative to these levels should give us a good idea about the markets current appetite for risk.
+? Bonds TLT: Pre-open today is printing below the major poc Support at 117.15. Time below this level is weak price location and imo would be a positive for equities.
+ Commodities: Oil USO is now printing above the 1/2R and poc Resistance around 34.17. Price holding above this level indicates further strength. Pre-open Gold GLD is printing above the 161.0 major poc.
+ Dollar Index: is printing below 79.80, the 2yr poc and momentum is negative and down.
+ EURUSD: on Friday chart cleared the Resistance at 1.3416 (1/2R off 2010 low) imo these charts currently have a positive bias for equities.
