pre-open comment Tuesday 2nd April
Sellers Responded to a higher Open on Monday (red-at-top). In the longer timeframe this is also Responsive Selling as the Value Area was printed entirely above the 30dy poc at 1550. If ES prints 1564 or higher during today’s session it negates any ST negative implications of Monday’s imbalance.
%Stocks>50dyma numbers: Nyse 66%, Nasdaq 59%. Numbers >50 are supportive.
First Level Support = ES 1550 (30dy poc)
Second Level Support = ES 1517.50 (3mn poc)
My version of the Rydex Assets Ratio was slightly higher at 4.27. The 49day low for this number is 3.49. This indicator usually peaks with the market but currently it is at 50% of its twelve month range.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
– Bonds TLT: prints above the maj poc at 117.15. Momentum is now positive and up.
+ Oil USO: is back in a stronger price location above 34.17, the 1/2R and now 3year poc. Momentum is positive and up.
? Gold GLD: still prints in a weak price location well below 161.0, the maj poc. Momentum (although positive) is now down. There is Support at the12mn poc at 152.70.
– Silver SLV: Still in a weak price location printing below 27.87, the 12mn poc and has today reached its lowest level since last August.
? Dollar Index: Last week printed its highest level since August last year. Today is printingat the 2mn poc at 82.75.
? EURUSD: The Major poc at 1.2777 was tested last week and has held – so far. Price below that level would be extremely weak price location. However there is a positive divergence between PriceOsc and Price. This would be confirmed if the indicator turns up.
imo these charts have a slight negative bias for equities.
