emini 8th April 2020

The major level at 2719 was tested yesterday. So far rejected. Price relative to the poc is very important to monitor and if time is printed above this level it would be the first LT positive, see highlighted comments from 19th March but note also the Resistance at 2786, dashed line, which is the 1/2R off this year’s high.

Dayframe: in the very short term I’m watching price relative to 2685.50 today which is 1/2R off yesterday’s high. Could be support or reisistance early in the day session.

Sentiment: My version of the Rydex Assets Ratio was lower at 4.78. The index fell to 3.35 on 03/17, the lowest since early 2016. The index reached 28.62 on 12/27, the highest reading in my database. Only twice before had the ratio printed above 26. Once in Jan 2018 and the market sold-off quickly, and once in Aug 2018 after which the market traded sideways for a month and then sold-off.

Stocks>50dyma numbers: Nyse 7% (unch), Nasdaq 12% (unch), R2000 12% (from 10%). Numbers >50 are supportive.