Pre-open comment Wednesday 13th May
Buyers Reacted on Tuesday (green-at-bottom), and ES was auctioned back to 2095.50, the 4mn poc, where it spent most time during the session, see chart and previous highlighted comments. As already said, the 7mn poc could migrate to this level with more time spent here which would likely spark a directional move out of this protracted consolidation. But in any case, price above/below 2095.50 can be judged strong/weak price location and ninety minutes pre-open ES is printing above this level.
Breadth numbers weakened yesterday even though the market was higher. These need to improve, see below.
First Level Support = 2095.50 (4mn poc)
Second Level Support = ES 2045.00 (7mn poc)
Stocks>50dyma numbers: Nyse 47% (from 50%), Nasdaq 44% (from 45%), R2000 38% (from 39%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.66, largely due to Bull fund assets that I follow hitting a six month low. Also note that the three month low for the ratio is at 9.91. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: closed at its lowest level since November. Momentum is down and negative. Support at 117.14, maj poc.
Dollar Index: is currently printing below the 94.67 Support (12mn poc)
Gold GLD: closed below 115.12, the 18mn poc in a weak price location.
Oil USO: last week printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location.
EURUSD: printing very close to the major 1/2R (1.1241)
