pre-open comment Thursday 26th April
Wednesday’s session opened gap higher above the 10dy poc at 1379 and then held that level. The 1/2R Resistance at 1386 was tested during the session and again overnight but pre-open ES has printed back down towards yesterday’s low. Index ETF charts IWM and QQQ also found Resistance at the their equivalent 1/2R levels off the March high. Until the charts print time above this proven Resistance I remain cautious simply because lower highs often come in at the 1/2R level off a high.
First Level Resistance = 1386 1/2R off March high
First Level Support = 1379 (minor 10dy poc)
Second Level Support = 1366 (4month poc)
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 4.17. Last Thursday the Ratio was down at 3.71 which was a 25dy low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Chart currently holding above the four month poc Support at 1.3069 and printed a 15dy high today.
? Dollar Index: Chart broke below the 79.09 (the 5mnth poc). As I write the Chart is printing just below that level at a 16dy low today.
? TLT: As reported yesterday the major poc migrated higher to 117.18. Wednesday’s session was spent below 117.18 but pre-open today TLT is printing above that level.
imo these charts are mixed and do not have an obvious bias for equities. This could change soon.
