Pre-open Wednesday 24th March
There was a new high on Tuesday with ES stalling around the 1171 level I mentioned in the webcast. Overnight ES has printed as low as 1162, just above First Level S/R at 1161.50. Aggressive Buying (green-at-top) was marked again and this (80% of the time) indicates a test of yesterday’s high today.
ST sentiment:
My version of the Rydex Assets ratio was up from 2.43 to 2.57 and the ISEE (equity only) Index came in high again at 231.
Supporting Charts: The dollar index is a bullish looking chart and has actually broken to a new rally high above the recent consolidation. Dollar strength has not been bullish for equities but there’s a lot of momentum in this market rally and I’m seeing ES higher still in defiance of that relationship.
However, 1171 is a good level for ES to stall and there is negative price oscillator divergence on the hourly chart but my guess is the end of this rally (ST or LT) won’t come with green at the top. I’m looking for 1161.50 to provide support or at least act as a springboard if it’s tested. Unless Significant Selling (red) is marked below 1161.50 I will be expecting Buyers to continue responding if opportunity is offered.
