See previous comments. Buyers were active last week (green). ES made another new high for this rally on Thursday and as long as it holds above 2041.00 it is in a strong price location.
First Level Support = 2057.00 (minor poc)
Second Level Support = 2041.00 (2mn poc)
Market Charts: All major market charts remained positive.
Stocks>50dyma numbers: Nyse 88%, Nasdaq 79%, R2000 83%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.15. Last Wednesday’s ratio at 5.20 was a three month high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: monitoring these level: TLT 128.43, the 3mn poc, and IEF 110.38, the 4mn poc. Charts must hold these levels to maintain a strong price location. TLT closed on Friday in a strong price location above its 1/2R off February high.
Dollar Index: printing below the 97.40 poc in a weak price location but up last week.
Gold: GLD – closed almost at 118.05, the major poc. GLD needs to hold this level to remain in a strong price location. Cash inidcates a higher open today.
Oil: USO earlier in the month found Support at 9.00, the 6mn poc and rallied from there. However, today futures indicate a sharply lower open following the Doah meeting on the weekend.
EURUSD: Last Tuesday printed its highest level since October but is lower from there. Needs to hold 1.1198 (3yr poc) to maintain a strong price location.
