posted 9.27 a.m. est
Pre-open Monday 19th April
From last week’s ebook “let’s assume higher until price gives us an indication of weakness. Marking Significant Sellers on the ES profile below 1183.50 would be a start.”
1183.50 is now the 15day poc and is again First Level S/R at the start of this week. Since the February low the poc has emerged at 1161.50 (although 1169 is close). This level should be considered next support if 1183.50 is broken.
Last week I marked three instances of Significant Buying and no Significant Selling.
ST Sentiment:
Last week the ISEE (equity only) index Calls% 10dy hit a new high indicating way too many public Bulls. I mentioned on Friday that the Rydex data was not as extreme but during Friday’s session (which was a down day for the market) the Rydex Bear Fund assets I follow fell by 17% which lifted my version of the Rydex Assets Ratio up from to 2.2 to 3. So this indicator is now also showing extreme bullishness.
VIX spiked up to 18 having recoded the lowest reading since July 2007 earlier in the week.
Supporting Charts with important levels. Pre-open:
USDJPY prints below 93.60
EURUSD prints below 1.360
UDX prints above 80.15
Both TLT and IEF closed last week above the high of the previous two weeks which is often a sign of strength in the ST.
imo these charts do not support higher equities.
