posted 9.29 a.m. est
Pre-open comment Tuesday 22nd March
Monday’s Value Area was higher, narrower and generated less Volume. That is not usually good for continuation higher but spent almost the entire session above the 1/2R off February high at 1289.50 (June contract) which is a stronger price location. If ES fails to hold above that level it will most likely indicate further weakness.
ES spent most of Monday’s session at 1293.50 which is now the 14day poc therefore the Area of First Level S/R today is between:
1289.50 = 1/2R from Feb high (129.98 SPY) and
1293.50 = 14day poc.
ST sentiment: My version of the Rydex Assets Ratio was slightly down at 2.12, its lowest level since early December. However the ISEE (equity-only) index came in at 222 an 11day high.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Holding strong today. Potentially could test November’s high at 1.4282.
+ UDX: New low today for this decline; its lowest level since December 2009.
– TLT: Down a little from Wednesday’s three month high but holding above the 91.82 poc which is a stronger price location if it holds.
imo these charts are mixed and it is difficult to infer a bias for equities.
