posted 9.26 a.m. et
pre-open comment Wednesday 14th March
On Tuesday I marked Aggressive Buying (green-at-top). We’re getting mixed readdings from the ST Sentiment indicators and Supporting Charts (see below). I’ll assume higher for now and repeat that “time spent below the 35day poc at 1366 would be the first sign of weakness”.
First Level Support = 1366 (35 dy poc)
Second Level Support = 1346 (poc)
Sentiment: My version of the Rydex Assets Ratio was slightly lower again; now down at 3.07 which is the lowest level since 01/25. This is well down from the ratio on 02/29 at 5.25 which was the highest I have in my database. Looks as though the Rydex Traders did not feel inclined to buy the early March dip and remember this is a contrarian indicator. Bear Fund Assets that I follow were up 18% yesterday. But… we should also note that yesterday the VIX fell to its lowest intraday level for five years. That indicates extraordinary complacency.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Chart is currently testing down into the four month poc at 1.3069. An important level to monitor.
– Dollar Index: Chart is currently printing just above the major 1/2 at 80.15 for the first time since 01/25.
+ TLT: chart is printing a four month low today and yesterday the maj poc fell to 116.22.
imo these charts are mixed and do not have an obvious bias for equities. This could change soon.
