posted 08.59 a.m. est
Pre-open comment Thursday 13th March
Buyers Responded (green-at-bottom) immediately on Wednesday following Tuesday’s Ineffective Selling, see previous highlighted comments. Once again, new short trades are now eliminated for me at least until Significant Selling is marked again. Momentum for all four stock index ETFs (although positive) is still down. Supporting Key Charts are mixed in their implied bias for equities, particularly watching Bonds, TLT, see below.
Dayframe: The minor (12dy) poc at 1872 is attracting more time pre-open today. A little more time here and the 30day poc could migrate to this level. Useful level to monitor intraday today.
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Stocks>50dyma numbers: Nyse 68% (unchanged), Nasdaq 64% (from 63%), R2000 66% (from 63%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 7.69. Last Thursday the ratio reached 7.82 which is the highest in my database indicating that the Rydex traders are extremely bullish. Historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: found Support on Wednesday at its maj 1/2R level (22.04).
+ KEY Chart EURJPY: printing above 140.96, the 1/2R off Dec high, in a strong price location.
– KEY Chart Bonds TLT: pre-open today is printing just above 106.34 (10mn poc). Strong price location if it holds this level.
Dollar Index: is today printing its lowest level since October and in a weak price location below 79.76, the maj poc.
Gold GLD: pre-open today is holding its strong price location above 127.20, the 18mn poc and is yesterday printed its highest level since September. Silver (SLV) is in a weaker price location below 21.02 (2yr poc).
Oil USO: Printing below 36.11, the 1/2R off Sep high in a weak price location. Momentum is down.
EURUSD: Printing a two year high today.
