Pre-open comment Friday 24th April
Thursday’s session generated a higher, wider Value Area on increased Volume. After the open there was a brief test of First Level Support and ES rallied immediately which is positive price action. A new high was reached, breadth numbers and price momentum are supportive and the Rydex ratio is falling. This suggests a break-out will hold. First sign of weakness would be time printed below 2095.50.
First Level Support = 2095.50 (3mn poc)
Second Level Support = ES 2045.00 (7mn poc); SPY 205.00
Stocks>50dyma numbers: Nyse 62% (from 58%), Nasdaq 61% (from 59%), R2000 62% (from 59%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower again (for the 5th day running) at 10.19. Now close to the recent 50day low at 9.91 which 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 ten 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.
