Pre-open comment Friday 4th March
The unusual lack of follow through from the Sellers (red-at-bottom low not tested) and ES printing all of Thursday’s session above the 1318 poc puts the chart back in a strong position. This looks like Significant Buyers and Sellers vying for control of the dayframe red and green alternating on the chart.
The 8dayVAH today comes in at 1319.50 and ES will open above that level. The 35day poc remains at 1318 but time spent around 1327 could lift that which would most likely be bullish.
I occasionally allow myself a glance at my Gann chart which tells me we are two years from the March 09 low with 3month and 6month cycles expiring. I’ll ignore that if Significant Buying continues to be marked.
First Level Support = 1318.00 8dayVAH = 1319.50
ST Sentiment: My version of the Rydex assets Ratio was down again slightly to 3.28 (from 3.29). 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 prints above the important 1/2R at 1.3580. It is now up into (just above) the 1/2R off the July 2008 high at 1.3956 which is the next level of significant resistance.
+ UDX: Chart in weak position below the 1/2R at 78.53. Reached a new 75day low today.
+ TLT: has not been able to hold above the 6month poc at 91.80.
imo these charts are positive for equities. EURUSD chart is worth watching re the resistance level.
