Pre-open comment Wednesday 2nd March
Tuesday: ES opened above the 8dayVAH at 1329.50 and immediately sold off. Responsive Selling was marked AND Aggressive Selling later in the day. Today’s 8dayVAL comes in at 1297 which is the exact overnight low. Stats suggest that yesterday’s low at 1300.75 will be tested during today’s session which is not too helpful as ES prints very close to that level pre-open.
Long trades are eliminated for me at least until Significant Buying is marked again.
Dayframe: If Sellers are establishing control here then it’s possible a rally could find resistance as early as Tuesday’s poc at 1308 (dotted).
Resistance = 1318.00 8dayVAL = 1297.00
Support = 1281.50 (4mnth)
ST Sentiment: My version of the Rydex assets Ratio was slightly higher at 3.55 (from 3.5). A higher ratio (even slightly) on a down day is not bullish. This ratio is historically very high. 3.94 (on 01/19) was the highest reading I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Chart prints above the 1/2R at 1.3580.
+ UDX: Chart in weak position below the 1/2R at 78.53. Reached a new 75day low on Tuesday.
– TLT: pre-open prints at the 6month poc at 91.80. Price Oscillator now above zero.
imo these charts are mixed for equities.
