posted 9.15 a.m. est
Pre-open Friday 28th May
In the a.m. on Thursday 1094 was intraday resistance and in the p.m. it was support. This is an indication of ST strength. Pre-open today ES has printed as high as 1106.75. Bulls would want to see 1094 holding now.
Longframe: The CP Market Timing system is negative. Long positions not allowed for me.
Dayframe: Effective Buying above 1094 would put Buyers in control. The last three imbalances have been Buying (green). Aggressive Buying (green-at-top) was marked on Thursday which eliminates new short positions for me until Significant Selling (red) is marked again. Long Trades allowed for me.
See comments yesterday re sentiment (yellow), and today’s comments below. Sentiment indicators have quickly reaching the point where we can say they indicate too many bears – which is bullish (contrarian).
ST entiment: My version of the Rydex Assets Ratio was down slightly from 1.4 to 1.2.
LT Sentiment: amgdata reported Equity Fund outflows (inc ETF activity) for week ended Wednesday were $16.7 Billion. That’s a massive number and I believe the largest one week outflow that I have seen. It fits with the AAII poll that I mentioned yesterday.
Supporting Charts (technicals based on daily Price Oscillator)
? USDJPY: Printing above the 89.97 poc and Price Osc turned up
– EURUSD: Trend still down and close to the low set last week.
– UDX: currently printing above the daily chart resistance at 85.14 but Price Osc down for six days.
? IEF has backed off from the 1/2R resistance.
These charts are mixed for equities in the short term
