Pre-open comment Wednesday 20th May
Longframe: As long as ES holds above 2095.50 it is in a strong price location. Also, see Sentiment below.
Support = 2095.50 (10mn poc)
Dayframe: In the most minor timeframe if ES is strong it should find Support around 2118.
Stocks>50dyma numbers: Nyse 57% (from 59%), Nasdaq 50% (from 52%), R2000 47% (from 49%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 9.85 which is a four month low. Largely due to Bear Fund assets that I follow reaching a five month high. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: closed at its lowest level since November and below 119,26, the 12mn poc. More important Support at 117.14, maj poc.
Dollar Index: Last week printed its lowest level since 22nd Jan but is now printing back above 94.67, the 12mn poc which is stronger price location.
Gold GLD: down sharply on Tuesday and appears to have been rejected by the Resistance at 117.60, the 1/2R off the November low. Support at 115.12, the 12mn poc – price below that level would indicate further weakness.
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 but closed at a fifteen day low on Tuesday.
EURUSD: last week printed its highest level since February but is today printing below the major 1/2R (1.1241)
