pre-open comment Thursday 15th March
Strictly following my Rules I had to mark Responsive Selling (red-at-top) on Wednesday. The Value Area was overlapping/higher and once again I am not going to assume that this slight imbalance carries any negative ST implications as long as ES holds above the 35dy poc at 1366.
First Level Support = 1366 (35 dy poc)
Second Level Support = 1346 (poc)
Sentiment: Re my version of the Rydex Assets Ratio – the erratic behaviour continues with the ratio shooting back up to 5.1 (from 3.07). The high for the ratio was on 02/29 when it reached 5.25. Bear Fund Assets that I follow which were up 18% on Tuesday were down 28% yesterday. Along with the VIX falling this week to its lowest intraday level for five years these indicators are sounding a warning here that upside is limited.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Chart is currently printing at the four month poc at 1.3069, in fact that is the high so far today. An important chart to monitor.
– Dollar Index: Chart is currently printing just above the major 1/2 at 80.15.
+ TLT: chart is printing a new four month low today.
imo these charts are mixed and do not have an obvious bias for equities. This could change soon.
