posted 08.52 a.m. est
pre-open comment Tuesday 26th March
Monday’s Value Area was printed between the minor VAH and VAL, see yesterday’s highlighted comments. ES opened above the minor VAH at 1551 and was immediately auctioned back to the minor poc at 1547. Unclear in the ST. Momentum (although positive) is currently down for all the index ETFs. Bulls would want to see a clear sign of strength here which would be a breakout above 1551 with Significant Buying marked. At a minimum ES needs to hold above the minor poc at 1547. The pre-open low is currently 1547.75.
%Stocks>50dyma numbers: Nyse 66%, Nasdaq 66% Numbers >50 are supportive.
First Level Support = ES 1547 (26dy poc)
Second Level Support = ES 1517.50 (3mn poc)
My version of the Rydex Assets Ratio was higher at 4.26 (from 3.87). The highest ratio since September was on 13th Feb at 5.22.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
? Bonds TLT: Pre-open today the chart prints below (just) the maj poc at 117.15. Momentum (although negative) is up.
? Oil USO: Reached a 23day high on Monday and pre-open is probing the Resisatnce at 34.17. Momentum is up and positive.
? Gold GLD: showed weakness after it broke below 161.0, the major poc, six weeks ago and still prints is a weak price location well below that level. But Momentum is positive and up.
? Silver SLV: Still in a weak price location.
– Dollar Index: strong price location above 81.35 (maj 1/2R) and today is also printing above 82.75, the 2mn poc. Momentum (although positive) is down.
– EURUSD: The 24mn poc has migrated to 1.3070. Chart is still in a weak price location below that level and on Monday printed its lowest level since November. Momentum (although negative) is up.
imo these charts are not clear re bias for equities.
