pre-open comment Tuesday 3rd April
On Monday Buyers Responded (green-at-bottom) to an early test of the 10dy poc at 1403, see yesterday’s comments (highlighted). A higher, wider, Value Area was generated which is usually a healthy sign. In the last ten days I have marked Significant Buying four times and no Significant Selling.
First Level Support = 1395 (30dy poc)
Second Level Support = 1366 (45 dy poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 5.16 (from 4.89). This is just a little below last Thursday’s ratio of 5.29 which was the higest ratio in my database and the biggest concern I have.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
+ EURUSD: Chart is currently printing above the four month poc (1.3069).
? Dollar Index: pre-open chart is printing just below the 5month poc (79.09) and Momentum is down. An important chart to monitor.
? TLT: is printing below 116.22, 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 Dollar Index chart.
