See previous comments. On Monday Aggressive Buying was marked again but the Value Area was narrower and Volume was below average. If ES prints below Monday’s session low (1912.50) post-open today then any ST positive implications of that green-at-top high would be negated and pre-open ES prints close to that level.
First Level Support = 1886.50 (min poc)
Second Level Support = ES 1870 (previous maj poc)
Key Chart: DIA probed 63.75, its major poc, this week but has so far not printed any time above it.
Stocks>50dyma numbers: Nyse 28% (unch), Nasdaq 23% (from 24%), R2000 22% (from 24%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 4.29. On 12/29 the ratio reached 9.17. On 01/21 it fell to 3.52 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.
Supporting Charts:
Bonds IEF, the 7-10 yr ETF: Held the major Support at 105.00 following October’s decline and rallied. Now printing time well above 106.60 (18mn poc) in a stronger price location and futures today have printed the highest level since August.
Dollar Index: A probe in early December above the March high was rejected but if the chart can now hold the minor 1/2R (98.85) off that high I will look for a break higher.
Gold: has printed a 65day high today but is still in a LT weak price location.
Oil: rallied strongly off the low in January but is sharply lower this week and currently printing below the 1/2R off that low in a weak price location.
EURUSD: The rally from the November low app
