posted 09.12 a.m. est
Pre-open comment Thursday 6th March
Wednesday generated a tight Value Area on low Volume but no Significant Selling marked now for eight days. ES is currently holding its strong price location above 1835.50 (6mn poc). First sign of weakness would be Effective Selling marked below that poc.
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Key Chart: Financial Sector XLF closed on Wednesday above its maj 1/2R level (22.04). Price printing time above this level would be a further positive for the market.
Stocks>50dyma numbers: Nyse 72% (from 73%), Nasdaq 69% (from 70%), R2000 70% (from 72%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.32. The ratio reached 7.71 on 02/26 which is the highest in my database.
Supporting Charts
Bonds TLT: pre-open today is printing an 8day low but in the LT is holding a strong price location above 106.34 (10mn poc). Momentum is up and positive.
Gold GLD: pre-open today is holding its strong price location above 127.20, the 18mn poc. Silver (SLV) is in a weaker price location below 21.02 (2yr poc).
Oil USO: Down sharply on Wednesday and pre-open today prints close to the 1/2R Support at 36.11. Momentum, although positive, is down.
Dollar Index: The Support at 79.76, the maj poc, has been recently probed but has held so far. Dollar Bulls would want to see this level hold.
EURUSD: Currently holding above 1.367, the 12mn poc, in a strong price location and higher today.
EURJPY: This chart is closely correlated to SPY. Today it has broken above the Resistance at 140.96, the 1/2R off Dec high and the level shown in yesterday’s post. This is strong price location and an implied positive for equities.
