posted 9.25 a.m. est
Pre-open Wednesday 21st April
Tuesday’s Value Area was higher and narrow generating less volume. The 9day poc has settled at 1195 which is also exactly 1/2R from last Thursday’s high and is therefore First Level S/R today. Too much Significant Buying (green) to consider the short side.
Dayframe: Supporting charts and ST Sentiment do not support higher but stats suggest that Tuesday’s high at 1205.75 will be tested today (8 out of 10 green-at-top highs get tested the following day).
ST Sentiment:
The ISEE (equity only) index came in high again at 230. Fourteen out of the last sixteen days have been above 200 for this index indicating that the public are very bullish – usually a warning that the market is overheated (contrarian).
My version of the Rydex Assets Ratio was unchanged at 2.8 which is still very high.
VIX fell back again on Tuesday to close at 15.73 just above the close a week ago which was the lowest since July 2007.
Supporting Charts with important levels. Pre-open:
USDJPY prints below 93.60
EURUSD prints below 1.360
UDX prints above 80.15
TLT prints at a 19day high
imo these charts do not support higher equities.
