Pre-open comment Friday 15th May
Please read previous highlighted comments. On Thursday I marked Aggressive Buying. These (green-at-top) highs are tested within a day (or two) 80% of the time. Pre-open today ES has printed a new high and with Price location, Price Momentum and Breadth numbers all improving I’m looking for a breakout to hold here. There has also been a marked rise in bearish sentiment this week which is a positive – details in today’s webcast. I
Support = 2095.50 (10mn poc)
Stocks>50dyma numbers: Nyse 56% (from 45%), Nasdaq 49% (from 44%), R2000 45% (from 37%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged at 10.48. On Tuesday Bull fund assets that I follow hit a six month low, and again on Wednesday. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: this week printed its lowest level since November. Momentum is down and negative. Support at 117.14, maj poc.
Dollar Index: below 94.67, the 12mn poc, and on Thursday printed its lowest level since 22nd Jan.
Gold GLD: on Thursday printed its highest level since February which was a probe into the Resistance at 117.60, the 1/2R off the November low.
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: on Thursday printed its highest level since February and above the major 1/2R (1.1241)
