posted 07.38 a.m. est
pre-open comment Thursday 23rd May
On Wednesday, for the first time in fifteen days, I marked Significant Selling. This means that new long trades are now eliminated for me at least until Significant Buying is marked again. Aggressive Selling in the p.m. auctioned ES quickly lower following FED comments. Overnight ES is lower but currently (two hours pre-open) has held First Level Support, see yesterday’s comments. Bulls would want to see 1626 hold, time below this level is relatively weak price location.
%Stocks>50dyma numbers: Nyse 74% (from 81%), Nasdaq 68% (from 72%), R2000 70% (from 77%). Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (26dy poc)
Sentiment: My version of the Rydex Assets Ratio was spiked higher to 5.43. I only have two readings higher than this in the database and these were at the market highs in April and September last year. More on this in webcast today.
Supporting Charts + or – or ? indicates bias for equities
? Bonds TLT: KEY CHART. Currently printing just below the major poc at 117.15. Time printed below this level is weak price location. Momentum is down and negative.
– Oil USO: Currently printing 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: Yesterday printed its highest level since July 2010. Momentum is positive and up.
? EURUSD: currently holding the major poc Support at 1.2777. However, Momentum is negative and down.
TLT is a Key Chart. Can it hold the major Support at 117.15?
