posted 09.02 a.m. est
pre-open comment Wednesday 22nd May
Tuesday generated a higher, wider Value Area. Significant Selling has not been marked for fourteen days. First indication of ST weakness would be Significant Selling marked below 1663.50, the 9day poc. First indication of LT weakness would be Significant Selling marked below 1626, the 25day poc.
%Stocks>50dyma numbers: Nyse 81%, Nasdaq 72%, R2000 77%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (25dy poc)
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.73. Historically this is high but back at the price highs in April and September last year the ratio got above 5.5. More recently the ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts + or – or ? indicates bias for equities
? Bonds TLT: KEY CHART. Currently printing just above the major poc at 117.15. Time printed below that level would be weak price location. Momentum is down and negative.
? Oil USO: Currently printing just below the Resistance around 34.20. Time printed above this level would put the chart back into a strong price location. Momentum, although positive is down.
– Gold GLD: Fell steeply last month to its lowest level for two years and that level has been approached this wek. Momentum is negative and down.
– Silver SLV: On Monday printed its lowest level since October 2010. Momentum is negative and down.
– Dollar Index: On Friday printed its highest level since July 2010. Momentum is positive and up.
? EURUSD: Printed a 6day high today and up a little off the major poc Support at 1.2777 (yet to break it). However, Momentum is negative and down.
TLT is a Key Chart. Can it hold the major Support at 117.15?
