posted 8.20 a.m. est
Pre-open Tuesday 1st June
Price action on Thursday and Friday was centred close to 1094, the Major poc. Note also that the 25day poc at 1082 supported the price action. Following Significant Selling on Friday that level has now been broken and pre-open today ES has printed as low as 1069.
1082 is now First Level S/R. If ES is going to test the 1036.75 low then 1082 would most likely be resistance to a rally. Effective Buying above the maj poc at 1094 would put Buyers in control but that has not happened yet. Sellers in control of the dayframe since close on 27th April.
ST entiment: My version of the Rydex Assets Ratio was up from 1.2 to 1.6 on Friday.
LT Sentiment: Lots of bears showing up in the indicators which suggest downside is limited but price location takes precedence and is weak.
Supporting Charts (technicals based on daily Price Oscillator)
? USDJPY: prints above the poc which migrated up slightly to 90.21.
– EURUSD: new four year low today.
– UDX: currently printing above the daily chart resistance at 85.14 but Price Osc down for seven days.
? IEF has backed off from the 1/2R resistance.
imo these charts are leaning to bearish for equities at the moment.
I cannot take long positions until CP Market Timing system turns positive and cannot take long trades until I mark Effective Buying above 1094. If ES remains below 1082 then a test of the 1036.75 low is likely but sentiment indicators suggest the downside is limited.
