posted 07.30 a.m. est
pre-open comment Tuesday 4th June
Friday’s red-at-bottom low was tested on Monday but ES recovered back above the poc at 1626 (First Level Support). The higher price range that has developed since early May has its poc at 1653 and VAL at 1625 (dotted) which was tested yesterday. Time spent below 1653 may bring the poc lower and that would most likely be a negative. In the ST, price below 1653 (poc) is weak price location, Bulls would want to see price back above that level.
%Stocks>50dyma numbers: Nyse 62%, Nasdaq 69%, R2000 73%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Resistance = ES 1653 (30dy poc)
First Level Support = ES 1626 (prev poc)
Sentiment: my version of the Rydex Assets Ratio was lower at 4.82. Two weeks ago the ratio reached 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. printing below the major poc at 117.15. Time printed below this level is weak price location. Last week chart reached its lowest level since April 2012.
– Oil USO: Currently printing below the Resistance around 34.20 which is weak price location. Momentum is now negative and down.
– Gold GLD: Fell steeply in April to its lowest level for two years and that level was approached again in May. Momentum, although negative, is up.
– Silver SLV: In May printed its lowest level since October 2010.
– Dollar Index: In May printed its highest level since July 2010. On Monday time was spent below the 82.75 poc but currently price prints just above that level.
? EURUSD: In May chart found Support just above the major poc at 1.2777 and is now attempting to print above the Resistance at 1.3070 which is the 24mn poc. Momentum, although negative, is up.
