posted 9.25 a.m. est
Wednesday 7th April
There was Aggressive Buying (green-at-top) on Tuesday. Wider (but overlapping) Value Area and increased volume (although volume was below average).
Green-at-top strongly indicates that Tuesday’s high at 1188 will be tested.
Longframe: Sentiment indicators are getting very stretched, there are various negative divergences with overbought oscillators and price and time looks good for a top of some degree. Nothing from price to confirm as yet so I will assume higher for now at least.
Dayframe: First Level S/R is the very minor 2day poc at 1183. If ES finds support at that level after the open or quickly tests and rejects that price (similar to what happened last Wednesday with 1161.50) then we should see a new high.
Sentiment:
My version of the Rydex Assets Ratio has fallen this week to 2.6 as the Market has rallied to new highs. That’s bullish in the very short-term (contrarian). I anticipate this indicator will spike up again if price pushes higher still.
VIX closed at the lowest level since Oct 2007.
