posted 09.15a.m.
from pre-open comments Monday 4th May
>>Buyers remain in control of the dayframe.
The most significant thing that happened last week was the probe above 872 which, for now at least, appears to be holding and that’s a sign of strength.
VA above 872 rather than centred around that level would be a further sign of strength.
I would want to see active Sellers generating Value Areas below 872 before considering the short side at these levels.<<
from pre-open comment Monday 27th April
>>Even though the Market is very overbought we could see an acceleration up into the early May time pivot <<
Pre-open Tuesday 5th May
After responding on Friday below 2dayVA, Significant Buyers were active again on Monday and aggressive buying was marked (green at top). As expected, the market is accelerating up into this week’s time pivot.
However, price location is currently strong with ES printing VA above 872.
I posed the question last week <<Will we see a sharp increase in bullish sentiment with this breakout?<<
With the SP500 Index breaking to a new three-month-high this week that is certainly something to watch closely for. A sharp increase in bullish sentiment would raise the chances of this overbought rally running out of steam. Last week a number of sentiment indicators actually saw an increase in bearishness which is short-term bullish.
The next major level for the index is the current 2009 high made in January at 943.85.
