posted 9.15 a.m. et
pre-open comment Tuesday 27th March
ES gapped sharply higher to Open on Monday, held the gain and later in the day Aggressive Buying (green-at-top) was marked as ES made a new rally high. Green-at-top day-session highs are usually tested the following day but as I’ve mentioned before the ST bullish implications of Aggressive Buying are not as reliable for a gap-up day. Nevertheless there is still no sign as yet of the Responsive Sellers as you can clearly see from the chart.
First Level Support = 1395 (20dy poc)
Second Level Support = 1366 (45 dy poc)
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.70 (from 4.61). The highest ratio in my database was recorded on 02/29 at 5.25. The ISEE (equity-only) number came in at a crazy high number of 410. I believe that is almost certainly the single highest number I have in my database and it lifted the 10dyma to 220.50 which is the highest reading for nearly a year. I’ve been commenting that the option ratios were not implying excessive bullishness but this one now does.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Chart is currently printing above the four month poc (1.3069) and printed a 19day high today.
? Dollar Index: Chart tested the 5month poc Support at 79.09 and is currently printing very slightly below this level. Weakness below this level would be bullish for equities imo. An important chart to monitor.
? TLT: is printing well below its major poc – difficult chart to make a judgement on at the moment.
imo these charts do not have an obvious bias for equities. This could change soon. Particulary need to watch the Support on the Dollar Index chart.
