Technical analysis – Market pre-open 20th May 2016
Most important is price relative to the poc at 2041. On Thursday ES opened below that level and there was an early sell-off which recovered. Pre-open today chart prints above that level which once again could be intraday Support or Resistance today. With Breadth numbers deteriorating over the last few days and charts very close to major Support (more in today’s video) I remain cautious. Effective Buying being marked above 2014 would be a big positive right now.
First Level Support/Resistance = 2041.00 (8mn poc)
KEY Chart: The 1/2R off last years high for IWM is at 111.38. Chart closed below that level on Wednesday in a weak price location.
Stocks>50dyma numbers: Nyse 41% (from 45%), Nasdaq 38% (from 41%), R2000 40% (from 44%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 3.88. On 04/26 the ratio reached 5.27 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
see today’s Video
