Pre-open comment Wednesday 30th March
Monday’s (red-at-bottom) low was tested early in Tuesday’s session. This was quickly rejected and after printing time around 1310.50 (as Friday and Monday did) ES auctioned higher to yesterday’s area of Resistance at 1317-18. Significant Buying was marked (Value Area was overlapping so this is not Effective Buying). Overnight ES has overcome this Resistance and has printed as high as 1324.50, this is above the VAH of 1315 measured on various timeframes.
1310.50 is now 11day poc.
Dayframe: Short trades now eliminated for me until Significant Selling is marked again. Intraday the level to watch is the 2mnth poc at 1318 for Support/Resistance early in the session.
First Level Support/Resistance = 1318 (2mth poc)
Support = 1310.50 (11day poc)
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged at at 2.73 (a 9day high) but early last week reached its lowest level since early December. The ISEE (equity-only) index came in at 221, the seventh consecutive day above 200.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Got close last week but failed to test the November high at 1.4282, still in strong price location though.
? UDX: Probe below November’s low last week was rejected with Dollar Index hitting a 6day high on Monday. Still in a weak price location but the daily Price Oscillator has turned up again from positive divergence.
? TLT: as I write pre-open TLT is printing at the 91.82 poc.
These charts are mixed – difficult to infer a bias for equities.
