Pre-open comment Tuesday 14th April
There was selling throughout Monday’s session but an overlapping Value Area was generated and therefore in the dayframe the Selling was Ineffective. As long as ES holds above 2072.00 it is in a strong ST price location.
First Level Support = 2072.00 (minor poc)
Second Level Support = ES 2045.00 (7mn poc); SPY 205.00
Stocks>50dyma numbers: Nyse 60% (from 63%), Nasdaq 61% (from 62%), R2000 63% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 10.86 (from 10.12). Last week the ratio fell to 9.91 which was a 50day low and represented a 29.5% fall from 14.06 on 03/02 which was the the highest in the database.
Supporting Charts:
Bonds TLT: as mentioned in last week’s webcast, with a little more time at 129.80 the 5mn poc would migrate to this level. This hasn’t happened yet but TLT closed at 129.80 on Monday. Pre-open today is printing below 130.75, the 1/2R off the Jan high which is weaker price location in the ST.
Dollar Index: on 03/13 chart printed its highest level since 2003 and is today printing close to that high.
Gold GLD: closed on Monday very close to 115.12, the 12mn poc.
Oil USO: pre-open today is printing just above 18.39, the 12mn poc. Time printed above this level would be a positive.
EURUSD: fell since May last year to major 1/2R Support at 1.1241. Chart held above that level through February but broke that Support in March.
