Pre-open comment Tuesday 3rd January
Last week I marked Significant Buying once and no Significant Selling. Friday closed within the Mon-Wed Range which shows no directional bias on this timeframe – previous week indicated Effective Buying.
The Chartprofit Market Timing System remained positive for Nyse and negative for Nasdaq; R2k Market Chart is negative, UK Market Chart is neutral. %Stocks>50dyma numbers for both Nyse and Nasdaq are above 50%.
Pre-open today ES has probed well above the VAH at 1265; as high as 1280.
First Level S/R = ES 1256 (45dy poc) SPY = 126.00
Second Level Support = ES 1244 (75dy poc) SPY =125.44
Sentiment: My version of the Rydex Assets Ratio ended the week at 2.78, a 35day high. Recent high is 2.96 (11/07).
Supporting Charts (+ or – or ? for equities). (Momentum = daily PriceOsc)
? EURUSD: The test of the Jan 2011 low last week has so far been rejected although chart is still in a weak price location.
+ Dollar Index: pre-open prints below 80.15 (the 1/2R off the 2008 low).
– TLT: the decline off the Dec high held the 117.88 Support (10month poc). Strong location. Momentum is up.
imo these charts are mixed and it is difficult to imply a ST bias for equities.
