pre-open comment Wednesday 18th April
Note: this was written fours hours before Open.
On Tuesday ES rallied to test the Resistance at 1386 1/2R off March high. If time is printed above this level it will put the chart in a stronger price location but as I wrote yesterday, I must see this before assuming furthr strength. A number of Index and ETF charts have tested their equivalent 1/2R and stalled in a similar way including QQQ, IWM and FTSE100.
Support/Resistance = 1386 (1/2R off March high)
First Level Support = 1375 (min poc)
Second Level Support = 1366 (4month poc)
Sentiment: My version of the Rydex Assets Ratio was up slightly at 4.82 (from 4.63). No panic yet from the Rydex traders (contrarian). Last week the ratio reached 5.64, the highest ratio in my database. Also, it is worth noting the extremely low number on Monday from ISEE (equity-only) index which came in at 88, the lowest single number since late September last year. There was lots of put buying on Monday (contrarian).
