Pre-open comment Monday 7th March
Longframe: Chartprofit Market Timing System stayed positive for all Major U.S. Market Charts except SP500 which turned neutral.
%Stocks > 50dyma: stayed above the 50 level for all major indices I follow.
Weekly Structure: No obvious breakdown.
Last week was mixed in terms of Significant Buying/Selling imbalances. Unusual to see the red-at-bottom low on Tuesday remain untested.
Dayframe: The 8dayVAH at the start of this week comes in at 1320. 1318 is now the 50day poc and therefore the important level to watch.
First Level S/R = 1318.00
8dayVAH = 1320 8dayVAL = 1297
LT Sentiment: AAII (public) poll did not show much change last week. The %Bulls stands at 36.8% (the high late last year was 63.3%) and the %Bears came in at 33.2% which is more than twice the low reached late last year of 16.4%. This is a steady decrease in bullish sentiment as the market has moved higher. Similarly the OCC Calls% 10dyma has fallen from an extreme high late last year to a six month low last week.
ST Sentiment: My version of the Rydex assets Ratio closed the week at 3.14, a three week low. This ratio is historically still very high. 3.94 (on 01/19) was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Chart above resistance and momentum is up.
+ UDX: Chart at its lowest today since November 5th. RSI(14) below 30.
+ TLT: did not hold above the 6month poc at 91.80. Weak position.
imo these charts are positive for equities.
