Pre-open comment Wednesday 2nd April
On Tuesday I marked Aggressive Buying (green-at-top). New short trades are now eliminated for me at least until Significant Selling is marked again. As long as ES holds above 1864 (25dy poc) it is in a strong price location in the ST. Breadth numbers improved again, see below.
First Level Support = 1864 (25dy poc)
Second Level Support = 1835.50 (6mn poc)
Stocks>50dyma numbers: Nyse 76% (from 70%), Nasdaq 59% (from 51%), R2000 66% (from 59%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 7.38. The ratio reached 8.39 on 03/13 which is the highest ratio in my database. The Rydex traders are extremely bullish and historically this has been a warning for the market.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: printing above its maj 1/2R level (22.04).
+ KEY Chart EURJPY: chart is printing above 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: pre-open is printing above 107.24, the 2year poc and printed an eight month high last week.
Dollar Index: printing above 79.76, the maj poc.
Gold GLD: printing below 127.20, the 18mn poc in a weak price location and printed a 35day low on Tuesday. Momentum remains down. SLV printed a 35day low last week.
Oil USO: A weak day on Tuesday and is now printing below 36.11, the 1/2R off Sep high in a weaker price location.
EURUSD: Printed a two year high in March. Off that high with Momentum negative and down but still holding a strong price location above 1.3673, the 12mn poc.
