posted 04.20 a.m. est
Pre-open comment Thursday 8th May
Note: this was posted at 4.00 a.m.
See yetserday’s highlighted comments. Tuesday’s red-at-bottom low was tested on Wednesday but Buyers Responded (green-at-bottom). ES was auctioned strongly higher and closed above 1872, the 4mn poc. As long as ES can hold this level it is in a strong price location. Still a lack of conviction in the market, see breadth numbers below.
First Level S/R = 1872.00 (4mn poc)
First Level Support = 1849.50 (minor 1/2R)
Major Support = ES 1835.50 (maj poc)
Pre-open, SPY closed just above 187.73 (7mn poc), IWM closed below111.48 (12mn poc), QQQ closed just above 86.32 (8mn poc) and DIA held and closed above its Support at 163.40 (2yr poc).
Stocks>50dyma numbers: Nyse 51% (from 46%), Nasdaq 23% (unch), R2000 28% (from 24%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.03. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: closed below its maj 1/2R level (22.04).
+KEY Chart EURJPY: chart is printing above 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: recently tested and held, the 2year poc Support at 107.24 and last week printed its highest level since June last year. Momentum, although positive is down.
Dollar Index: below 79.76, the maj poc and is yesterday printed close to last year’s low which is 78.92.
Gold GLD: still printing below 127.20, its 18mn poc in a LT weak price location.
Oil USO: printing below 37.31, the 1/2R off 2011 high but has stalled at the 36.11 Support (1/2R off 2013 high).
EURUSD: Printing above 1.3673, the 12mn poc Support and today prints close to the March high.
