ES generated an overlapping Value Area on Friday and closed the sessioin at 2041.00, the 2mn poc. Price relative to this level could give an indication re ST strength/weakness at the start of this week with minor poc Resistance coming in atat 2057.00. One hour pre-open ES is printing just above 2050.
First Level Resistance = 2057.00 (minor poc)
First Level Support = 2041.00 (2mn poc)
Second Level Support = 1956.90 (1/2R off last year’s high)
Major Support (major) = ES 1870 (previous maj poc)
Key Charts: Today the German DAX index has rallied to test 9740, the major poc, having broken below that level last week.
Market Charts: All major market charts remained positive.
Stocks>50dyma numbers: Nyse 79%, Nasdaq 69%, R2000 70%, UK 71% . Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.99. Wednesday’s ratio at 5.11 was a 57day high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: TLT closed above 128.43, the 3mn poc, in a strong price location. IEF closed above 110.38, the 4mn poc, in a strong price location.
Dollar Index: printing below the 97.40 poc in a weak price location and has today printed its lowest level since October.
Gold: GLD – On Friday found Support at the previous poc at 115.50. Price below this level would suggest further weakness but closed the week in a strong price location above 118.05, the major poc and cash indicates a higher open today.
Oil: USO last week found Support at 9.00, the 6mn poc and rallied from there.
EURUSD: found Support recently at 1.1085, the 1/2R off last year’s low and has rallied from there. On Thursday printed its highest level since October.
