Technical analysis – Market post-open 31st March 2016
See Tuesday’s highlighted comments. ES rallied early in Tuesday’s session and then cosolidated above 2033.00, the minor poc. Agrressive Buying (green-at-top) was marked later in the day. Wednesday consolidated at a higher level above the mid 2040s which had previously proved Resistance. Significant Selling (red) is yet to be marked and I’m targeting 2090 until that happens.
First Level Support = 1990 (38day poc)
Second Level Support = 1956.90 (1/2R off last year’s high)
Major Support (major) = ES 1870 (previous maj poc)
Stocks>50dyma numbers: Nyse 90%, Nasdaq 77%, R2000 83%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio is at 4.53 having reached 4.89, a 48day high, earlier in the week. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: TLT – has held the Support at 126.70 (1/2R level), and closed on Wednesday above 128.43, the 3mn poc, in a strong price location.
Dollar Index: printing below the 97.40 poc in a weak price location and is today printing its lowest level since October.
Gold: GLD was down last week but is currently holding above 115.50, the major poc. Price below this level would be weaker price location.
Oil: USO First Level Support is at 9.23, 1/2R off the February low.
EURUSD: found Support recently at 1.1085, the 1/2R off last year’s low and has rallied from there. Is today printing its highest level since October.
