posted 9.30a.m. est
Pre-open comment Wednesday 11th May
Tuesday: Aggressive Buying was marked which means that Short Trades are now eliminated for me until Selling is marked again. Both Monday and Tuesday session lows came in at the given First Level S/R. This is encouraging for the Bulls.
Dayframe: Tuesday green-at-top high came in at 1356.50 and that is likely to be tested today. The 20day poc migrated higher to 1354 and that is the most important level to monitor in the ST along with 1349.50, the 1/2R off the May high. Intra-day Support at that level during today’s session would be a further sign of ST strength.
First Level S/R = 1354 (20day poc)
Support = 1349.50 (minor 1/2R) also Tuesday’s poc
Major Support = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was up to 3.96 (from 3.70). The ratio on 3rd May reached 4.57 which was the highest ratio I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: 4th May printed the highest level since December 2009. On Monday the chart printed a 13day low but has so far held the lower support channel off the January low.
+ Dollar Index: 4th May printed the lowest level since July 2008. On Monday the printed an 13day high but currently remains within the down channel off the January high.
? TLT: Last week chart printed its highest level since early December. 6day low today.
imo these charts are mixed and do not have an obvious bias for equities.
