Technical analysis – Market pre-open 11th March 2016
We’ve seen a series of Values Areas at these higher levels consolidating around 1990 which has emerged as a minor (30day) poc. Price relative to that level may be useful to monitor as a guide to ST strength/weakness remembering that as long as ES holds above 1956.90, the 1/2R off last year’s high, it is in a LT strong price location. Pre-open today ES has printed a new high at 2011.50.
With the breadth numbers supportive, see below, and sentiment still indicating lots of bears I would want to see Significant Selling (red) marked below 1956.90 before considering the short side. See the equivalent SPY level Support yesterday on the Pulse chart.
First Level Support = 1990 (30day poc)
Second Level Support = 1956.90 (1/2R off last year’s high)
Major Support (major) = ES 1870 (previous maj poc)
Stocks>50dyma numbers: Nyse 80%, Nasdaq 64%, R2000 70%. Numbers >50 are supportive.
Sentiment : My version of the Rydex Assets Ratio was lower at 4.02. The rydex traders are being very slow to get on this rally. This is a contrarian indicator. The ratio recently fell to 2.64 which was the lowest since November 2012.
Supporting Charts: see today’s webcast
