Technical analysis – Market pre-open 8th April 2016
I have mentioned many times that when imbalances fail to follow on it is often a clue that price action is close to a developing poc of some importance. Wednesday’s (green-at-top) high was not tested on Thursday, see yesterday’s highlighted comments. Price was finding 2041 attractive and during Thursday’s session the 2month poc migrated to that level.
We also know that a poc will often migrate just before a directional move so we now need to monitor price relative to 2041.00 closely. There is a minor poc at 2057.00 and price relative to that level post-open may give a clue re ST direction. Overnight ES has rallied back and pre-open prints above 2050.
First Level S/R = 2041.00 (2mn poc)
Second Level Support = 1956.90 (1/2R off last year’s high)
Major Support (major) = ES 1870 (previous maj poc)
Key Charts: DAX remains below 9740, the major poc, having broken below that level on Monday.
Stocks>50dyma numbers: Nyse 76% (from 83%), Nasdaq 68% (from 75%), R2000 68% (from 76%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 5.0. Wednesday’s ratio at 5.11 was a 57day high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
See today’s video
