Pre-open comment Monday 4th May
On Thursday I marked Aggressive Selling below 2095.50 (see Friday’s highlighted comments) which indicated weakness, but on Friday Significant Buying was marked above Thursday’s high which negated any ST negative implications of that red-at-bottom low. As I wrote on Thursday “ES is still finding price around 2095.50 (4mn poc) attractive” and currently Sellers (and possibly Buyers) are finding it difficult auctioning price away from this level. Even so, price above/below 2095.50 can be judged strong/weak price location.
New short trades are eliminated for me, at least until Significant Selling is marked again. Bulls would want see breadth numbers improve, see below.
ES is still finding price around 2095.50 (4mn poc) “attractive”
First Level Support = 2095.50 (4mn poc)
Second Level Support = ES 2045.00 (7mn poc)
CP Market Charts: Nyse turned neutral; Nasdaq & R2000 turned negative.
Stocks>50dyma numbers: Nyse 50%, Nasdaq 41%, R2000 38%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 12.26, a 27day high. The highest ratio in the database was at 14.06 on 03/02.
