posted 9.29 a.m. est
Pre-open comment Friday 6th May
Thursday’s high was a slight test of the 1344 minor level of Resistance and then sold off down to the major support at 1327 – both levels given pre-open yesterday. There was a brief test of that support which has so far held – ES currently printing 1348 pre-open which is a rally above the last two Value Areas. If Friday closes out the week above Wednesday’s low at 1337.50 (134.23 SPY) it keeps the Weekly structure looking bullish. The long side is still eliminated for me – until Significant Buyers are marked again.
Resistance = 1354 (minor poc) and 1349.50 (minor 1/2R)
Support = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 4.22 from 4.39. Tuesday’s ratio of 4.57 was the highest ratio I have in my database. ISEE (equity-only) index came in at 142 the lowest single reading for two months.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Wednesday printed the highest level since December 2009 but today chart printed an 11day low. Uptrend still intact though.
+ UDX: Wednesday printed the lowest level since July 2008 but today chart printed an 11day high.
? TLT: Thursday printed its highest level since early December but is off today.
imo these charts are mixed and do not have an obvious bias for equities.
