posted 09.20 a.m. est
Pre-open comment Thursday 10th April
ST Positives: Buyers reacted on Tuesday to a probe of the 1835.50 Support and yesterday Aggressive Buying (green-at-top) was also marked. SPY, IWM and QQQ also Support this week just where Bulls would want it. These levels, as shown in eBook, are now proven Support and important to monitor. Nyse and R2000 %stocks>50dyma numbers picked up yesterday (see below) and hopefully Nasdaq number will confirm.
LT: Small Caps and Tech sectors are clearly underperforming Large Cap now which is usually not a positive for the market.
First Level Resistance = ES 1872.50 (30dy poc and 2mn VAH dashed)
First Level Support = ES 1835.50 (6mn poc)
Stocks>50dyma numbers: Nyse 67% (from 60%), Nasdaq 46% (from 40%), R2000 54% (from 47%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.98. The ratio reached 8.39 on 03/13 which is the highest ratio in my database. The Rydex traders are extremely bullish and historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
? KEY Chart Financial Sector XLF: pre-open chart is printing just above 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: Last week tested, but held, the 2year poc Support at 107.24.
+ KEY Chart Dollar Index: is today printing below 79.76, the maj poc Support.
Gold GLD: pre-open is printing at its 18mn poc, 127.20.
Oil USO: printing in a strong price location above 36.11, the 1/2R off Sep high.
EURUSD: Last week’s low, printed on Friday, was exactly at 1.3673, the 12mn poc Support. Momentum is negative but up.
