pre-open comment Wednesday 28th March
ES built a higher but narrower Value Area on reduced Volume which is not usually a constructive kind of Profile. The main concern right now is the Rydex Ratio (see below). First sign of further weakness on this timeframe would be Sellers being marked below 1395.
First Level Support = 1395 (20dy poc)
Second Level Support = 1366 (45 dy poc)
Sentiment: My version of the Rydex Assets Ratio jumped to 5.29 (from 4.70). This is now the higest ratio in my database. Historically this has been a warning for the market and usually suggests that upside is limited at least.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Chart is currently printing above the four month poc (1.3069).
? Dollar Index: as I write the Chart is printing exactly at the 5month poc at 79.09. An important chart to monitor.
? TLT: is printing well below 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.
