emini SP500 2nd April 2020 – pre-open from ChartProfit
Wednesday’s Value Area was generated below 2556.50, the 3mn poc. This is a weaker position in the ST. Aggressive Selling (red-at-bottom) was marked. Price printing above 2509.75, yesterday’s session high, would negate any ST negative implications of that Selling Day.
In the longer-term price has been consolidating below 2719, the major poc, which remains an indication of weakness on that timeframe as well. At a minimum, Bulls would want to see a recovery back above 2556.50 as soon as possible.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.68. The index fell to 3.35 on 03/17, 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.
Stocks>50dyma numbers: Nyse 3% (from 4%), Nasdaq 6% (from 9%), R2000 5% (from 7%). Numbers >50 are supportive.
