Pre-open comment Monday 28th March
Longframe: The Chartprofit Market Timing System turned neutral (from negative) for Nyse, SP500 and R2000 Market Charts. Nasdaq stayed negative.
Daily Breadth Indicators have improved. The %Stocks>50dayma is now above 50% for both Nyse and Nasdaq. Also the %NNH25 5dayma is back above zero for both Market Charts.
Weekly Structure was typical of a bullish market with a strong Friday above Mon-Wed range high and a higher weekly Bar.
In a constructive week for the Bulls I marked two instances of Significant Buying and no Significant Selling. Price location is now stronger and enough time was spent at 1293.50 to cause the 5month poc to migrate to this level. This becomes strong Support. The 2month poc remains at 1318 and if I calcualte a Value Area from 1st Jan the VAH comes in at 1319.50. Therefor 1318-1319.50 should be an area of strong Resistance.
Support = 1293.50 (5mth poc)
Resistance = 1318 (2mth poc) to 1319.50 (3mth VAH)
ST Sentiment: My version of the Rydex Assets Ratio closed the week on an eight day high at 2.62 but earlier in the week had reached its lowest level since early December.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Failed to test the November high at 1.4282 but still in strong price location.
? UDX: Probe below November’s low last week was rejected with Dollar Index closing Friday near the high of the week. Still in a weak price location but the daily Price Oscillator has turned up again from positive divergence.
? TLT: In a stronger price location above the 91.82 poc but pre-open has probed down into that level.
These charts are mixed – difficult to infer a bias for equities.
