Pre-open comment Friday 5th June
On Thursday ES probed the major Support. Enough time was spent around this area of price to migrate the 10mn poc to 2098.50. Following jobs data pre-open, ES printed as low as 2086.25 and rallied a little from there but still prints below the poc. Bulls would hope that ES recovers this level as quickly as possible – price below 2098.50 is weak price location. Breadth deteriorated further.
First Level Resistance = 2107.00
First Level S/R = 2098.50 (10mn poc)
Stocks>50dyma numbers: Nyse 37% (from 46%), Nasdaq 49% (from 55%), R2000 43% (from 51%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 11.30. Bear fund assets that I follow have fallen back and are close to the extreme low level of earlier in the year. Thta’s a concern. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts: in webcast
