posted 09.19 a.m. est
Pre-open comment Friday 21st March
See previous highlighted comments. On Wednesday Buyers Responded to another brief probe below 1852, the minor 1/2R of the recent high. ES closed near the high of the session and pre-open today has printed higher, back to the VAH near 1872 where it has once again found Resistance. Very little time would need to be spent at this price to lift the minor poc of the current range to this level.
First Level Support = 1852 (minor 1/2R ES Jun)
Second Level Support = 1835.50 (6mn poc)
Breadth: Stocks>50dyma numbers: Nyse 67% (from 66%), Nasdaq 63% (unch)%, R2000 67% (from 65%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.98. The ratio reached 8.39 last week which is the highest ratio in my database. The Rydex traders are extremely bullish and historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: printing above its maj 1/2R level (22.04).
? KEY Chart EURJPY: chart is printing just slightly above 140.96, the 1/2R off Dec high.
? KEY Chart Bonds TLT: poc has migrated to 107.24 and pre-open is printing just sligtly above this level.
Dollar Index: now printing back above 79.76, the maj poc.
Gold GLD: lower this week but currently still printing above 127.20, the 18mn poc. Momentum remains down and has been negatively diverging with price.
Oil USO: Printing below 36.11, the 1/2R off Sep high in a weak price location.
EURUSD: Printed a two year high last week but lower this week with Momentum now down.
