Pre-open comment Monday 13th April
Last week I marked Significant Buying twice and no Significant Selling. Aggressive Buying (green-at-top) was marked for the first time in nineteen days and this was above 2072.00, the minor poc. Friday generated the sixth consecutive Value Area above the 2045.00 poc. This is positive price action and as long as ES holds above 2072.00 it is in a strong ST price location. Price above 2045.00 is strong price location in the longer term.
First Level Support = 2072.00 (minor poc)
Second Level Support = ES 2045.00 (7mn poc); SPY 205.00 (6mn poc)
Breadth, Market Charts: Nyse & Nasdaq turned positive from neutral, R2000 stayed positive. UK stayed positive.
Stocks>50dyma numbers: Nyse 63%, Nasdaq 62%, R2000 63%, UK 78%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio finished the week at 10.12. Tuesday’s ratio at 9.91 was a 50day low and represented a 29.5% fall from 14.06 on 03/02 which was the the highest in the database.
Supporting Charts:
Bonds TLT: pre-open today is printing below 130.75, the 1/2R off the Jan high which is weaker price location in the ST.
Dollar Index: on 03/13 chart printed its highest level since 2003 and is todayprinting close to that high.
Gold GLD: pre-open today is printing very close to 115.12, the 12mn poc.
Oil USO: pre-open today is printing just above 18.39, the 12mn poc. Time printed above this level would be a positive.
EURUSD: fell since May last year to major 1/2R Support at 1.1241. Chart held above that level through February but broke that Support in March.
