posted 09.16 a.m. est
Pre-open comment Tuesday 22nd April
Last Wednesday the 3mn poc migrated higher to 1849.50 and became First Level Support. You can see that both subsequent Value Areas on Thursday and Monday were generated above this level. As long as ES holds above 1849.50 it is in a strong price location.
First Level Support = 1849.50 (minor 1/2R and 3mn poc)
Second Level Support = ES 1835.50 (6mn poc)
SPY, IWM and QQQ print back above their important poc levels in improved price locations. DIA is currently finding Resistance at 164.23, its 9mn poc. Breadth numbers are improving but not yet supportive for Nasdaq and Small caps (see below).
Breadth: CP market Timing System turned positive (from negative) for Nyse and stayed negative for Nasdaq, R2000 and UK.
Stocks>50dyma numbers: Nyse 57%, Nasdaq 34%, R2000 42%, UK 34%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended last week lower at 4.83, a 72day low. On Monday the ratio was higher at 5.82.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: prints below its maj 1/2R level (22.04).
+KEY Chart EURJPY: chart is printing above 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: recently tested and held, the 2year poc Support at 107.24 and last week printed its highest level since June last year.
Dollar Index: printing just above 79.76, the maj poc.
Gold GLD: Last week there was a test above 127.20, the 18mn poc, but that was rejected and the chart prints sharply lower.
Oil USO: last week printed its highest level since September last year.
EURUSD: Printing above 1.3673, the 12mn poc Support.
