posted 08.45 a.m. est
pre-open comment Friday 24th May
Thursday generated a lower, narrower Value Area. Sentiment indicators are suggesting over optimism (more in webcast today) but so far, at least, First Level Support at 1626 has held. Significant Selling marked below this level would be an indication of weakness on the longer timeframe. Bulls would hope the Support holds and Significant Buyers are marked again.
Dayframe: 10day poc moved to 1653. This is the best level I have for potential Resistance. Price printing back above this level would be a positive in the ST.
%Stocks>50dyma numbers: Nyse 72%, Nasdaq 68%, R2000 71% (from 77%). Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (28dy poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 4.68. Wednesday’s ratio was 5.43 and I only have two readings higher than this in the database which were were at the market highs in April and September last year.
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 34.20which is weak 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: Has this week 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?
