posted 09.22 a.m. est
Pre-open comment Wednesday 30th April
As I anticipated the 3mn poc migrated up to 1871.50. There appears to be a lack of directional conviction (no Significant Buying or Selling) since ES auctioned higher in the middle of the month. For that reason and because market Breadth is still not supportive and Small Caps are still underperforming I will be cautious if chart prints below 1871.50. Looking for Buying marked above that level before considering new longs.
First Level S/R = 1871.50 (3mn poc)
First Level Support = 1849.50 (minor 1/2R)
Second Level Support = ES 1835.50 (maj poc)
Pre-open, Stock Index ETFs are mixed once again relative to their important levels. SPY prints almost at 187.73 (7mn poc); DIA prints above 163.40 (2yr poc), IWM prints below 112.27 (12mn poc); QQQ prints above 85.30 (8mn poc).
Stocks>50dyma numbers: Nyse 50% (from 47%), Nasdaq 24% (unch), R2000 29% (unch). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.58. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: pre-open today 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 on Friday printed its highest level since June last year.
Dollar Index: printing below 79.76, the maj poc, at a twelve day low.
Gold GLD: still printing below 127.20, its 18mn poc.
Oil USO: printing a fifteen day low today and below 37.31, the 1/2R off 2011 high.
EURUSD: Printing above 1.3673, the 12mn poc Support.
