posted 08.25 a.m. est
Pre-open comment Wednesday 8th January
Monday’s red-at-top high was exceeded on Tuesday negating that Selling imbalance. Tuesday’s high came in just below the 1835.50 Resistance. Time printed above that level would be stronger price location, see Monday’s highlighted comments.
First Level Resistance = 1835.50 (25dy poc)
First Level Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 64% (from 60%), Nasdaq 74% (from 69%), R2000 70% (from 65%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.23. The ratio reached 6.65 on 12/27 which is the highest ratio in my database and registered extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: For second day chart probed up into 102.85. the 10mn poc Resistance. Pre-open the chart prints below this level. If time were to be printed above that poc it would put the chart in a much stronger price location.
Gold GLD: Tested the June low early last week and has rallied from there but remains in a very weak price location.
Oil USO: Sharply lower last week breaking back below 34.13 (3yr poc) which puts it in a weak price location. Momentum is negative and down.
Dollar Index: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level. Printed a 29day high today above 80.15.
EURUSD: Recently broke out to a two year high but this was rejected and chart printed a 20day low on Monday. Momentum is negative and down.
