posted 9 a.m. est
Pre-open Thursday 25th March
from webcast: “there is potential resistance up around 1171”
1161.50 did indeed provide support yesterday – that was the low. ES did not test the previous day’s high but looks as though it will today (ES currently prints 1170). If ES can consolidate above 1170 area I’m looking for a move above 1190. The ST Sentiment is looking like it is going to overheat (see below) and we enter a strong time pivot (late March/early April). Bullish ST for now though if ES holds above 1161.50.
ST Sentiment:
My version of the Rydex Assets ratio spiked up to 3.18 (from 2.57). This is getting excessive. At the January price high the ratio was 3.27 and that was the highest in my five year database. The Rydex Timers have suddenly turned very bullish and that should have us on our guard.
Supporting Charts: Are mixed for Stocks
from webcast re USDJPY: “a strong price location relatively and I could see this chart popping higher with equities“. We got the pop yesterday off the 89.94 poc support. This is supportive for equities imo. Resistance is the halfway point at 93.60.
from webcast re EURUSD: “poc at 1.360 and currently this chart is below that lower level, so this is not helping stocks.” New 10month low for this chart yesterday.
from 02/05 eBook re Dollar Index: >>If Dollar Index can consolidate above the 1/2R at 80.155 it would indicate further strength for this chart<< not exactly but more or less and now the chart has broken up out of the consolidation. Continued strength will likely cause a problem for equities.
