Pre-open comment Wednesday 22nd April
ES opened above 2095.50 (3mn poc) and Sellers Reacted immediately (red-at-top). Note that the minor poc has also migrated to this level. Overnight ES has printed as low as 2080.25 (as of ninety minutes pre-open). I’m not looking to initiate new longs until Significant Buying (green) is marked again, preferably above 2095.50, but as long as ES holds above 2045.00 it is in a strong LT price location.
First Level Resistance = 2095.50 (3mn poc)
First Level Support = 2070.00 (1/2R off Feb high)
Major Support = ES 2045.00 (7mn poc); SPY 205.00
Stocks>50dyma numbers: Nyse 57% (from 58%), Nasdaq 58% (from 59%), R2000 59% (from 61%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 10.68. Previous week the ratio fell to 9.91 which was a 50day low and represented a 29.5% fall from 14.06 on 03/02 (the highest in the database).
Supporting Charts:
Bonds TLT: pre-open today is printing just above 129.80, the 6mn poc. It is important that the chart holds above this level.
Gold GLD: pre-open today is printing very close to 115.12, the 11mn poc.
Oil USO: for eight days has been printing above 18.39, the 12mn poc, in a stronger price location than recently.
EURUSD: fell since May last year to major 1/2R Support at 1.1241. Chart held above that level through February but broke that Support in March.
