posted 09.17 a.m. est
pre-open comment Wednesday 24th April
Following Monday’s Aggressive Buying ES printed a higher/narrower Value Area on Tuesday. With Buyers Active and price location stronger I will assume higher as long as ES holds First Level Support at 1562 (1/2R off recent high). I’d like to see the breadth numbers improve, see below. All four major Index ETFs are now printing back above their poc levels in a stronger price location. Bulls would want to see IWM 90.44 and SPY 155.80 hold now.
%Stocks>50dyma numbers: Nyse 55% Nasdaq 47% R2K 46%. Numbers >50 are considered supportive. These numbers are not convincingly supportive.
First Level Support = ES 1562 (1/2R off recent high)
Second Level Support = ES 1548.50 (5mn poc)
Rydex Assets Ratio was slightly higher at 3.81. Monday’s 3.45 was the lowest since 4th Jan.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ Bonds TLT: KEY CHART. On Tuesday tested the Resistance at 123.42, the 1/2R off last July’s high and has fallen back below this level. Momentum is positive but down.
– Oil USO: Last week printed its lowest level since June last year. Momentum is negative and down.
– Gold GLD: I’ve been saying this is a weak chart since early February when it fell below its major poc. Has fallen steeply this month to its lowest level for two years.
– Silver SLV: Likewise this chart. Has been weak since it double-failed at its maj poc in January and this month has printed its lowest level since October 2010.
– Dollar Index: KEY CHART. Is today printing above the 2month poc at 82.75. LT strong location if it holds above the 81.35 1/2R level. Momentum is negative but up.
? EURUSD: Printed a 13day low today below the 24mn poc at 1.3070. Momentum is positive and up.
Watching particularly TLT and Dollar Index. Charts are too mixed here to imply a bias for equities.
