Pre-open Wednesday 31st March
Tuesday’s Value Area was wider but overlapping Monday’s. Volume was up but well below average. ES is consolidating in a range with 1168 being the attractive price. This is a market waiting for the next impetus.
Pre-open ES has printed as low as 1162.75 (following the ADP report) which is just above the 1161.50 First Level S/R. Consolidation above 1168 (dashed) would imply strength and a new rally high – consolidation below 1161.50 would imply short term weakness. As long as 1161.50 holds or is recovered quickly on a test I favour higher.
Supporting Charts: The Dollar is weaker today. GLD (gold etf) has rallied back to the 6mnth poc at 109.42.
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 2.6 but the ISEE (equity only) index came in with another high number at 218.
