posted 9.28 a.m. et
pre-open comment Thursday 17th May
On Wednesday I marked Aggressive Selling (red-at-bottom) again. As I said yesterday Red-at-bottom lows usually get tested pretty quickly, as Tuesday’s now has been. Overnight ES has printed as low as 1316, just above poc Support. The first minor sign of strength on the dayframe would be Significant Buying being marked. I remain cautious on every timeframe.
Resistance = 1366 (4month poc)
Support = 1313 (poc)
Sentiment: I’ve said that my version of the Rydex Assets Ratio has shown no indication of panic. That remains the case. Yesterday’s ratio was up slightly at 4.50.
And Investors Intelligence poll actually saw an increase in Bulls this week to 39.4% (from 38.7). Bears came in at 22.3% which is up only slightly and an extremely low number considering the sell off. Last week’s 20.4% Bears was the lowest since the May top last year. There is nothing like fear in these numbers which from a contrarian angle is not bullish.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: is lower again today printing its lowest level since mid January.
– Dollar Index: is today printing higher again, well above 80.15, major level.
– TLT: on Tuesday chart printed its highest level since December.
imo these charts have a negative bias for equities.
