posted 9.29 a.m. est
Pre-open comment Wednesday 20th April
Looks like my interpretation of the recent Buying Activity was uneccessarily over-complicated (see yesterday’s pre-open comments). Fact is we had Significant Buyers marked for three consecutive days (now four). Buying (green) was marked last Thursday so Short Trades have been eliminated for me since pre-open Friday and even though I said yesterday “ES has found Support at an obvious level so maybe the Buyers can do something from here” I had no anticipation that the “something” would be to auction ES swiftly back to the 5month poc at 1328.50 which is what has happened overnight.
In the ST maybe 1328.50 will cap this gap higher after the open and maybe Responsive Sellers will see this as opportunity but, as I wrote pre-open Monday 11th, “if ES can print some time above this important level it will be in a strong price location and I would expect a new high”.
First Level Resistance = 1328.50 (5month poc)
First Level Support 1312.50 (10day poc)
ST Sentiment: My version of the Rydex Assets Ratio was up slightly to 2.90. The ratio reached 3.99 on Thursday 7th April. That’s the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Strong recovery. Now printing highest level since January 2010.
+ UDX: Very weak today. Threatening to break the low in late 2009.
– TLT: Chart holding up well. Above 91.82, the 18month poc .
imo these charts are mixed. Dollar very weak today so most likely a postive bias for equities.
