pre-open comment Friday 26th April
Thursday generated a higher, wider Value Area on less Volume. ES currently holding at this higher level above the First Level Support at 1562 (1/2R off recent high). Breadth numbers have improved slightly (see below) and Rydex Ratio has fallen (see below).
Index ETFs also currently holding above their 1/2R levels off recent high as follows:
SPY 156.62; DIA 146.51; IWM 92.04; QQQ 68.52
%Stocks>50dyma numbers: Nyse 59% Nasdaq 53% R2K 52%. Numbers >50 are considered supportive.
First Level Support = ES 1562 (1/2R off recent high)
Second Level Support = ES 1548.50 (5mn poc)
Rydex Assets Ratio: My version of the Rydex Assets Ratio was lower at 3.27 which is the lowest since 4th Jan.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ Bonds TLT: KEY CHART. On Tuesday tested the Resistance at 123.42, the 1/2R off last July’s high and has fallen back below this level. Momentum is positive but down.
? Oil USO: Attempting to print above the Resistance at 33.10 (1/2R off last year’s low). Momentum is negative but up.
? Gold GLD: Has fallen steeply this month to its lowest level for two years. Momentum is negative but has turned up.
– Silver SLV: Has been weak since it double-failed at its maj poc in January and this month has printed its lowest level since October 2010. Momentum is negative but has turned up.
? Dollar Index: KEY CHART. Currently ranging and volatile. Is currently printing at the 2month poc at 82.75. LT strong location if it holds above the 81.35 1/2R level. Momentum is negative but up.
? EURUSD: Currently printing just below the 24mn poc at 1.3070. Momentum is positive but down.
Watching particularly TLT and Dollar Index. Charts are mixed but I would say they imply a slight positive bias for equities.
