Technical analysis – Market pre-open 22nd April 2016
For the first time in fifteen days I marked Significant Selling (red) on Thursday. A lower Value Area was generated but within this week’s range of VAs and above our First Level Support at 2075.50. So this is Aggressive Selling in the dayframe but Reactive in the longer time frame. Even so, I would want to see Significant Buying (green) marked before initiating new long trades. Selling marked below 2075.50 would be more imoprtant and the first sign of weakness. And as long as ES holds above 2041.00 it is in a strong price location in the LT.
First Level Support = 2075.50 (min poc)
Second Level Support = 2041.00 (2mn poc)
Stocks>50dyma numbers: Nyse 81% (from 87%), Nasdaq 77% (from 79%), R2000 80% (from 84%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.04 (from 4.40). The first three days this week the ratio fell as the market advanced. On Thursday the market fell and the ratio went up – I do not want to see more of that, it would suggest the Rydex traders are “buying the dip” and that is not usually a good sign. The three month high is at 5.20 recorded last week. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
see today’s video
