Pre-open comment Tuesday 4th March
Monday generated the sixth consecutive Value Area above 1835.50 (6mn poc). There was a brief, rejected, probe below this level but ES is currently holding its strong price location. First sign of weakness would be Effective Selling marked below that poc.
First Level Support = 1835.50 (6mn poc)
Second Level Support = 1792.00
Stocks>50dyma numbers: Nyse 63% (from 68%), Nasdaq 57% (from 61%), R2000 57% (from 61%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.53. I only have one ratio higher than that in my database and that is 7.71 recorded last Wednesday.
Supporting Charts
Bonds TLT: Holding its strong price location above 106.34 (10mn poc). Momentum turned positive yesterday.
Gold GLD: pre-open today is holding its strong price location above 127.20, the 18mn poc. Silver (SLV) is in a weaker price location below 21.02 (2yr poc).
Oil USO: Held its strong price location last week above 36.11, the 1/2R off September’s high and on Monday printed its highest level since September.
Dollar Index: The Support at 79.76, the maj poc, has been probed but has held so far. Dollar Bulls would want to see this level hold.
EURUSD: Currently holding above 1.367, the 12mn poc, in a strong price location. Mometum is positive but turned down on Monday.
