Pre-open Wednesday 17th February
See previous comments. ES opened above the 1870 poc on Tuesday. Support was then found at that level, see chart, price rallied and more time was printed close to the 56 day poc (1886.50). Aggressive Buying was marked and the Value Area was printed entirely above 1870 which is now important Support. Bulls would now want that level to hold. As of one hour pre-open, ES has printed above 1900.
First Level Support (minor) = ES 1886.50 (55 day poc)
Second Level Support (major) = ES 1870 (previous maj poc)
Stock Index ETFs: Momentum (PriceOsc) for SPY, IWM & QQQ, although negative, ticked up yesterday. Momentum for DIA is now positive and up.
Stocks>50dyma numbers at end of last week: Nyse 34% (from 26%), Nasdaq 24% (from 18%), R2000 27% (from 19%). Numbers >50 are supportive.
Sentiment: The market was higher on Tuesday but my version of the Rydex Assets Ratio was almost unchanged at 3.49. That’s encouraging. Last week the ratio fell to 3.37 which is as low as it has been for two years except for the sell-off late last year when the ratio fell to 3.00. On 12/29 the ratio reached 9.17.
Supporting Charts:
Bonds IEF, the 7-10 yr ETF: Held the major Support at 105.00 following October’s decline and rallied strongly. On Thursday last week the chart spiked to a new high but futures are printing a six day low today.
Dollar Index: found Support last week at 95.22, the 12mn poc. Higher from there and Bulls would want to see that level hold.
Gold: gold has rallied strongly and now prints above 115.12, the 24mn poc, which is now Support.
Oil: is printing back below the 1/2R off the January low which is weak price location, but higher today.
EURUSD: last week probed above 1.1241, the Major 1/2R, but is off that level. First Level Support is at 1.1085, the 1/2R off last year’s low.
