posted 09.14 a.m. est
Pre-open comment Monday 14th April
Last week I marked Significant Selling four times and Significant Buying twice. Sellers auctioned ES below the 1835.50 poc and this is weak price location without an obvious and close next level Support. If ES remains below that level I will be very cautious and at current levels would not consider new longs on any timeframe.
SPY, IWM and QQQ have Momentum negative and down and print below their important poc levels (see eBook).
First Level Resistance = ES 1835.50 (6mn poc)
Breadth: CP market Timing System is now negative for all Major Market Charts.
Stocks>50dyma numbers: Nyse 40%, Nasdaq 24%, R2000 28%, UK 33%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.6. This is a 31day low but historically still high so no panic here despite the weakness last week. The ratio reached 8.39 on 03/13 which is the highest ratio in my database. The Rydex traders were extremely bullish at that point and historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: prints below its maj 1/2R level (22.04).
? KEY Chart EURJPY: chart is printing almost at 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: recently tested and held, the 2year poc Support at 107.24 and has rallied from there.
Dollar Index: is today printing just below 79.76, the maj poc.
Gold GLD: pre-open today is printing a 16day high and just probing above 127.20, its 18mn poc.
Oil USO: printing in a strong price location above 36.11, the 1/2R off Sep high.
EURUSD: Printing above 1.3673, the 12mn poc Support. Momentum is negative but up.
