posted 3.30 a.m. est
Pre-open Thursday 3rd June
Tuesday’s low was not tested on Wednesday (8 out of 10 times a red-at-bottom low is tested the following day). This lack of follow-through was also seen late last week when the Buyers failed to auction ES above the 10day Value Area (grey). Over the last four days both Significant Buyers and Sellers have been marked within this VA but none of this activity has been Effective. This type of action is most commonly seen close to an important poc, in this case 1082.
I’m waiting for some directional conviction. Either Effective Buying marked above 1094 or Effective Selling below 1082.
ST sentiment: My version of the Rydex Assets Ratio was down from 1.6 to 1.3. Bear fund assets I follow were up more than 25%. ISEE (equity-only) index came in at 100 which is a low number and sends the 10dyma to a new low. Both indicators show lots of bears and support the idea that downside is limited here (contrarian).
Supporting Charts (technicals based on daily Price Oscillator)
+ USDJPY: prints above the poc which migrated up slightly to 90.21. Price Osc up for four days
– EURUSD: new four year low on Tuesday but as discussed in the webcast there is major support here.
? UDX: currently printing above the daily chart resistance at 85.14 but Price Osc down for nine days.
+ IEF is down off from the 1/2R resistance.
imo these charts mixed for equities at the moment.
