posted 9.28 a.m. est
Pre-open Thursday 1st April
ES made its low on Wednesday on the First Level S/R 1161.50 and rallied. That’s a sign of ST strength. Wednesday’s Value Area was overlapping, once again, building value with 1168 developing as the poc. Since the market came higher seven days ago there has been no Significant Selling which should give the Buyers confidence.
Dayframe: Overnight ES has been as high as 1173.25. 1168 could remain an attractive price but the next tell of ST strength would be this level providing support. As I said yesterday – consolidation above 1168 (dashed) would imply strength and a test of the March high.
ST Sentiment: Rydex Bull Fund assets that I follow were up 14% yesterday lifting my version of the Rydex Assets Ratio up from 2.6 to 3.2 which is very high. The ISEE (equity only) index came in with another high number at 214 – each number this week has been above 200. The 10dyma is now at 197.20 (at the January price high this reached 205.8).
Supporting Charts: GLD (gold etf) is today attempting to break back above its 6mnth poc at 109.42 and USDJPY is attempting to break above the important 1/2R at 93.60.
imo it would be bullish for equities if we see consolidation above these levels.
The Dollar Index is currently printing above 80.15 1/2R and could fall back to that important support – again, in the short term this could be helpful for equities.
