posted 9.24 a.m. et
Pre-open comment Wednesday 29th February
Buyers are still in control of the dayframe but ES appears to be grinding higher rather than trending – note the overlapping Value Areas. Still, the last four Value Areas have been printed above the minor poc at 1355 and no markable Response yet from the Sellers. Instead it’s been the Buyers Responding (three times in the last eight days) and accepting small retracements as opportunity. First sign of weakness would be time spent below 1355.
Dayframe: 7dy poc at 1367 is potential Support today.
First Level Support = 1355 (10 dy poc)
Second Level Support = 1346 (20 dy poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 3.4 (from 4.77). The reason for this was an increase in Bear Fund assets of more than 25%. Rydex traders seem to be fading the Dow/SP500 breaking out to the highest levels since mid 2008. Last week the ratio reached 5.14 which is the highest I have in my database but as as the market has moved higher since then ratio has fallen sharply which is not usually ST bearish (contrarian).
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: printed back up the 50dy high level reached last Friday.
+ Dollar Index: printed a 50dy low today.
– TLT: pre-open prints above the 10month poc at 117.88.
imo these charts currently have a slight positive bias for equities.
