posted 9.18 a.m. est
Pre-open comment Tuesday 24th May
ES opened on Monday gap down and generated a lower, narrower VA on less volume.
Price location is now weak and I will not consider new longs at these levels if ES remains below 1327. Breadth deteriorated; the %Stocks>50ma numbers for both Nyse and Nasdaq is now below 40.
Resistance = 1327 (6month poc)
The 50day VAL comes in today at 1302 and if the major trend of the market is still up Buyers would be expected to Respond to a test of this level should it occur this week.
Financial Sector is still a drag on the general market; XLF hit a new 21week low on Monday.
QQQ has managed to recover back above its 9month poc at 5694. This is an important chart/level to watch.
ST Sentiment: My version of the Rydex Assets Ratio was up slightly to 3.32 (from 3.26). Although that’s still historically high it is well down from the extreme of 4.57 recorded earlier this month.
Supporting Charts (+ or – or ? for equities).
– EURUSD: 45day low on Monday. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 35day high on Monday. Daily momentum is up.
? TLT: 5month high last week but Daily momentum is down.
imo these charts are mixed and bias for equities is currently unclear.
