Pre-open Thursday 8th April
There was no test of Tuesday’s green-at-top high on Wednesday. 80% of the time a green-at-top high gets tested the following day. Also, Wednesday’s low was lower than Tuesday’s and it’s rare to see the low of a green-at-top day broken the following day.
So there are some unusual events in the dayframe which may suggest the negatives in the longframe are having an impact – see underlined from yesterday’s comments above.
Longframe: imo the time for a turn is perfect and price almost reached my level of 1190 or above (cash SP500 high on Tuesday was 1191.8) but I have marked no Significant Selling (red) yet. I’ll wait for Effective Selling below the poc level at 1161.50 before looking to short in this timeframe.
Dayframe: The 3day poc settled at 1182.50 so that’s First Level Resistance for today. First indication of a trend change comes when poc levels become resistance rather than support.
ST Sentiment: My version of the Rydex Assets Ratio was back up above 3 on Wednesday. On a down day for the market this is a bearish indication. VIX closed below 17 again.
