Pre-open comment Tuesday 4th May
Monday’s session generated a higher, narrower Value Area. As long as ES holds above 2095.50 it is in a strong price location. Bulls would want see breadth numbers improve, see below, and Price Momentum: SPY, DIA, QQQ have positive momentum but heading lower and IWM has negative momentum and heading lower.
First Level Support = 2095.50 (4mn poc)
Second Level Support = ES 2045.00 (7mn poc)
Stocks>50dyma numbers: Nyse 53% (from 50%), Nasdaq 45% (from 41%), R2000 40% (from 38%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 11.52. Friday’s ratio at 12.26 was a 27day high. The highest ratio in the database was at 14.06 on 03/02.
Supporting Charts:
Bonds TLT: closed at its lowest level since December. Momentum is down and negative. Support at 117.14, maj poc.
Gold GLD: closed below 115.12, the 18mn poc in a weak price location.
Oil USO: for three weeks has been printing above 18.39, the 12mn poc, in a stronger price location.
EURUSD: in February broke below the major 1/2R at 1.1241. There was a swift decline but chart has now rallied back to that level which is now acting as Resistance.
