emini 4th May 2018 – pre-open from Chartprofit
See previous, highlighted comments. Monday’s session opened above the 2672 poc and immediately sold-off; subsequent Value Areas have been printed below that level. ES remains in a weak price location. Thursday’s low was a test of 2595, the 7month Value Area Low, see chart. The test was rejected and ES reversed intra-day to finish the session near the highs. Price acceptance (time) around that VAL would be a negative. The 12mn poc could migrate lower if a little more time is spent close to either 2630 or 2650. Should that happen then the VAL would also shift. I remain cautious here.
First Level Resistance = 2647 (4mn poc)
Second Level Resistance = 2672 (12mn poc)
Index ETFs: SPY 264.50 = 9mn; IWM 153.50 = 1year
Stocks>50dyma numbers: Nyse 44% (from 46%), Nasdaq 43% (from 47%), R2000 47% (from 51%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 18.22. Up from 13.93 on 04/18, a 43 day low which indicated some nervousness from the Rydex traders. I had been concerned that we didn’t see any fear registering in March as the market fell but on 04/16 Bull fund assets fell to their lowest level since October.
Other Charts – see today’s video.
