Pre-open comment Thursday 8th March
I marked Aggressive Buying on Wednesday (green-at-top) and ES printed above Tuesday’s session high at 1349.50 which negated any bearish significance of Tuesday’s selling imbalance. I said pre-open yesterday that the main thing to monitor is “whether ES can hold above 1346” which, for now at least, it obviously has. Pre-open today ES has rallied enough to test the First Level Resistance at 1366, the pre-open high being 1365.75.
First Level Resistance = 1366.00 (18 dy poc)
First Level Support = 1346 (30 dy poc)
Second Level Support = 1307 (maj poc)
Sentiment: My version of the Rydex Assets Ratio was lower again 3.86 (from 4.12). Last Wednesday’s ratio at 5.25 is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Found support just above the four month poc at 1.3069. An important level to monitor to see if this Support holds.
? Dollar Index: The chart between two important levels. The major 1/2 at 80.15 and the 5month poc at 79.09.
? TLT: chart prints below (just) the 10month poc at 117.88.
imo these charts do not have an obvious bias for equities. This could change soon.
