Question from subscriber:
>>Wonder if you had a way of detecting today’s massive breakout?<<
We know equity ETFs have moved into stronger price locations but also the price location of various assets favoured equity strength. As per pre-open yesterday: Oil, holding above the minor 1/2R off the January low – Bonds printing below the minor 1/2R off this year’s high – Dollar index printing above 97.87, the 1/2R off this years high – EURUSD printing below 1.0925, the 12mn poc. We also know that Sentiment has been overly pessimistic, for example the Rydex ratio has remained low. Again from yesterday’s post-open “The rydex traders have been very slow to get on this rally”.
There were also intraday indications of strength post-open as well. I chart the tick index on a minute basis and track my own indicator which is Cumulative tick, starting from zero as the market opens. Post open yesterday the Cumulative tick never dropped below zero at all. There were some high readings on the tick index itself early on above +800. See chart.
