emini ES 23rd March 2020 pre-open from ChartProfit
Friday’s session generated the seventh consecutive Value Area below 2719, the major poc. Consolidating below a major poc is a weak sign. The first longer-term positive would be ES printing time back above that level.
Overnight ES printed a new low for the sell-off but pre-open has recovered strongly back above 2340.
Sentiment: My version of the Rydex Assets Ratio fell to 3.35 mid-week, the lowest since early 2016. The index reached 28.62 on 12/27, the highest reading in my database. Only twice before had the ratio printed above 26. Once in Jan 2018 and the market sold-off quickly, and once in Aug 2018 after which the market traded sideways for a month and then sold-off.
Market Charts: All major Market Charts remained negative.
Stocks>50dyma numbers: Nyse 2%, Nasdaq 3%, R2000 2%. Numbers >50 are supportive.
Bonds – TLT: There has been incredible volatility in March with TLT spiking higher to almost 180, collapsing below 140 and then rallying back to close on Friday at 159.43.
Dollar Index: Last week the Dollar Index approached 103 and looks set to test the Jan ’17 high just above that level.
Gold: The 1/2R off 2011 high is at 143.0. Price relative to this level is important to monitor.
Oil: USO has declined this year and had been printing below 11.41, the major poc, in a weak position. Rallied back mid-February but turned lower from that Resistance. Crashed from there to its lowest price at 4.29 last week.
GBPUSD: Last week GBPUSD traded as low as 1.1411, its lowest level since 1985. The major poc is at 1.29.33.
EURUSD: Last week EURUSD printed its lowest level since April 2017.
Dollar Index: Last week the Dollar Index approached 103 and looks set to test the Jan ’17 high just above that level.
Gold: The 1/2R off 2011 high is at 143.0. Price relative to this level is important to monitor.
Oil: USO has declined this year and had been printing below 11.41, the major poc, in a weak position. Rallied back mid-February but turned lower from that Resistance. Crashed from there to its lowest price at 4.29 last week.
GBPUSD: Last week GBPUSD traded as low as 1.1411, its lowest level since 1985. The major poc is at 1.29.33.
EURUSD: Last week EURUSD printed its lowest level since April 2017.
