posted 09.15 a.m. est
Pre-open comment Monday 24th March
Last week I marked Significant Selling twice and Significant Buying once. Although there was another failed probe above 1872 on Friday enough time was printed there to lift the 2mn poc to that level, see previous highlighted comments. This is now First Level Resistance.
First Level Resistance = 1872 (2mn poc)
First Level Support = 1852 (minor 1/2R ES Jun)
Second Level Support = 1835.50 (6mn poc)
Breadth: The CP Market Timing System turned back to positive for Nyse; remained neutral for Nasdaq and R2000 and remained negative for UK.
Stocks>50dyma numbers: Nyse 68%, Nasdaq 63%, R2000 67%, UK 45% Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 7.85. On 03/13 the ratio reached 8.39 which is the highest ratio in my database. The Rydex traders are extremely bullish and historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: printing above its maj 1/2R level (22.04).
? KEY Chart EURJPY: chart is printing just slightly above 140.96, the 1/2R off Dec high.
? KEY Chart Bonds TLT: 107.24 is the 2year poc and pre-open TLT is printing just sligtly above this level.
Dollar Index: now printing back above 79.76, the maj poc.
Gold GLD: pre-open today is printing below 127.20, the 18mn poc in a weaker price location. Momentum remains down. SLV prints a 28day low today.
Oil USO: Pre-opn is printing just below 36.11, the 1/2R off Sep high.
EURUSD: Printed a two year earlier in the month but lower last week with Momentum down.
