emini 21st May 2020 – pre-open
Early in Thursday’s session there was a brief, rejected test of First Level Support at 2786, the 1/2R off this year’s high (dashed line on chart). Monday spiked higher and price has so far held the higher level. Most important Support is at 2719, the maj poc. ES needs to hold this level to maintain a strong position in the longer timeframe.
FTSE: the major poc is at 5870 and FTSE is printing above that level this week in a stronger position.
IWM: the major poc is at 115.35. The low of this recent dip came in at 117.18. The major 1/2R from the 2018 high is at 134.50; IWM tested this Resistance in April and sold-off. Price printing time above that level would be a positive.
TLT: 6mn poc is at 165.36. TLT is printing back below that level in a weaker position.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 9.35. The S&P has retraced more than half this year’s decline but the ratio has retraced less than 25% of its own decline. The index fell to 3.35 on 03/17, the lowest since early 2016. The index reached 28.62 on 12/27, the highest reading in my database.
Stocks>50dyma numbers: Nyse 76% (from 66%), Nasdaq 82% (from 74%), R2000 76% (from 66%). Numbers >50 are supportive.
