Pre-open comment Monday 27th April
Last week the 3mn poc migrated to 2095.50 and first sign of weakness would now be time printed below this level A new high was reached, breadth numbers and price momentum are supportive and the Rydex ratio is falling. This is all positive.
First Level Support = 2095.50 (3mn poc)
Second Level Support = ES 2045.00 (7mn poc); SPY 205.00
Breadth: All four major Market Charts are now positive.
Stocks>50dyma numbers: Nyse 61%, Nasdaq 58%, R2000 60%, UK 68%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower again (for the 6th day running) on Friday, finishing the week at 10.09. 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.
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.
