posted 9.29 a.m. est
Pre-open comment Tuesday 17th May
The 1327 support was tested on Monday with the Session Close being below that level. Aggressive Selling (red-at-bottom) was marked.
Bulls would want to see ES recover back above 1327 asap but with the Chartprofit Market Timing System negative for Nyse and Nasdaq and the %Stocks>50ma numbers falling below 50 there is a strong possibilty of further weakness here. Pre-open, SPY and IWM also print below their respective support levels as discussed in Monday’s webcast.
My #Rule tells me never to fade the last imbalance and although the activity of the Significant Buyers and Sellers has been very erratic recently that rule means that Longs have been eliminated for me since close Friday.
Dayframe: If Significant Buyers are still active and seeking opportunity, a dip early in the session to around 1317 “may” bring a Response. Should that not occur and ES prints a Value Area below 1327 today then I expect further IT weakness.
Major S/R = 1327 (6month poc)
Support = 1317 (prev poc)
ST Sentiment: My version of the Rydex Assets Ratio was down at 3.6 (from 3.96). Earlier in the month the ratio reached 4.57 which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: New 30day low on Monday. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 28day high on Monday. Daily momentum is up.
– TLT: New five month high today.
these charts currently have a negative ST bias for equities.
