Pre-open comment Wednesday 6th April
ES has now consolidated for five days above the 1318 poc. Significant Buyers were not marked in that time but Sellers have not taken the opportunity. This looks like Buyers Resting.
Dayframe: Pre-open ES has printed as high as 1336.50, just below the February high at 1337.75 (June contract). If the minor support (Mon/Tue) at 1330 holds for the first hour of the session we’ll likely see that high taken out. The 1324 First Level Support which has limited the downside for the last three sessions remains the most important level in the ST.
First Level Support = 1324 (16day poc)
Second Level Support = 1318 (2mth poc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 3.77 (from 3.87). I only have one reading higher than yesterday’s ratio and that was 3.94 on 19th January.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Today has broken out above the November high to the highest level since January 2010.
+ UDX: Recent test of November’s low did not see the chart lower but the Dollar Index is still in a weak price location.
? TLT: the 1/2R off the February low at 91.54 has so far provided support since the March high. Chart currently prints very close to that level; pre-open low is 91.58.
imo these charts have a positive ST bias for equities.
