Pre-open comment Thursday 23rd April
On Wednesday ES opened below Tuesday’s low and Buyers Reacted immediately (green-at-bottom). Later in the session, Tuesday’s red-at-top high was tested negating any ST negative implications of that imbalance. We have noted previously that when Reactive Buyers and Sellers are both active it usually indicates that a poc of some degree is emerging within the range and pre-open today ES is printing more time around 2095.50 which is currently the 3mn poc. We may see more time around this level but price above that point is ST strong price location and as long as ES holds above 2045.00 it is in a strong LT price location.
First Level S/R = 2095.50 (3mn poc)
Second Level Support = 2070.00 (1/2R off Feb high)
Major Support = ES 2045.00 (7mn poc); SPY 205.00
Stocks>50dyma numbers: Nyse 58% (from 57%), Nasdaq 59% (from 58%), R2000 59% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.33. 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 below 129.80, the 6mn poc, in a weaker price location.
Gold GLD: pre-open today is printing below 115.12, the 11mn poc, in a weaker price location.
Oil USO: for nine 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.
