emini ES 27th March 2020 – pre-open from ChartProfit
Thursday’s session generated a higher Value Area, the third since Monday’s low, but it was another (11th) below 2719, the major poc. Consolidation below a major poc is a weak sign. The first longer-term positive would be ES printing time back above that level. Aggressive Buying (green-at-top) was marked on Thursday – the low of that Buying day is 2486. If 2486 is broken it would negate any ST positive implications of that Buying Day; i.e. buyers disrupted, and in the ST that is not usually a good sign. There is Support at the 2mn poc at 2425.0.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.15. This week the market has bounced but the ratio has not picked up very much which would usually be (in normal markets??) a ST positive sign. Last week the ratio fell to 3.35, 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 4% (from 3%), Nasdaq 6% (from 3%), R2000 5% (from 3%). Numbers >50 are supportive.
