posted 9.29 a.m. est
Pre-open comment Thursday 5th May
Last two days we’ve seen lower Value Areas and the previous day’s poc (dotted) has not been exceeded during the day session. I’ve noted this before and it’s a weak pattern. Wednesday’s low found support (temporary?) at February’s high which is an obvious level watched by chartists. More important (but less obvious) support imo is the 1327 poc.
Resistance = 1354 (16day poc)
Support = 1327 (6month poc)
Dayframe: 1344 is minor level of Resistance.
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 4.39 from Tuesday’s ratio of 4.57 which is the highest ratio I have in my database. I noted yesterday that I would expect Tuesday’s extreme to come down quite a bit before the market could move higher. So far it has hardly declined at all. This is a key reading to watch – more about this in the webcast.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Wednesday printed the highest level since December 2009 but today chart is at a 6day low.
+ UDX: Wednesday printed the lowest level since July 2008 but today chart is at a 6day high.
– TLT: Currently printing at the highest level since early December.
imo these charts are mixed and do not have an obvious bias for equities.
