posted 09.21 a.m. estpre-open comment Wednesday 6th February
Please see previous comments highlighted on graphic.
Tuesday’s session generated a higher Value Area but pre-open today has printed down towards yesterday’s low. No Significant Imbalances have been marked for four days but ES is currently holding and consolidating at this higher level of price in the region of 1500. In the ST as long as ES holds above 1495 it is a minor sign of strength.
First Level Support = 1495 (40 dy poc)
%Stocks>50dyma numbers: Nyse 84% and Nasdaq 75%. Numbers >50 are supportive. Numbers>80 usually considered overbought.
Sentiment: My version of the Rydex Assets Ratio indicates indecision among the Rydex traders. Bear fund assets that I follow were up more than 20% on Monday but fell over 16% yesterday causing the ratio to rally back to 4.11 from Monday’s sharply lower 3.49.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ Bonds TLT: Currently having difficulty printing back above 117.15, the major poc. Time below this level is weak price location.
? Commodities: Oil USO has been overbought technically but still printing above the 1/2R and poc Resistance around 34.17 although on a 10day low pre-open today. Price holding above this level indicates further strength. Gold GLD has spent nearly all of the last four weeks consolidating above the 161.0 major poc which is a sign of strength if that level holds. Silver SLV is a Key Chart. It has again rallied to 31.25, its major poc, but has not exceeded it.
? Dollar Index: Pre-open, chart is printing back above (just) 79.80, the 2yr poc.
+ EURUSD: Chart has so far held above 1.3416 (1/2R off 2010 low) since it cleared that Resistance nine days ago.
imo these charts are mixed and although they most likely have a positive bias for equities this could change quickly as they all print close to important levels.
