Pre-open Friday 9th April
I said yesterday that the “First indication of a trend change comes when poc levels become resistance rather than support”. That did not happen on Thursday. ES spent the whole day rallying (after an early test of the previous day’s low) back to the minor poc and is currently printing above that level. Value Area was wider but overlapping/lower. The Buyers are still in control but their influence may be slowing.
The 4day poc is now at 1183.50; so this is First Level S/R today. We now look good for a test of that green-at-top high on Tuesday.
ST Sentiment: My version of the Rydex Assets Ratio was down from 3 to 2.6 but the ISEE (equity only) index came in with another high number at 238 – which lifts the 10dyma to a new high of 221.50 indicating extreme public bullishness. VIX closed below 17 again.
