posted 09.21 a.m. est
Pre-open comment Friday 9th May
Following Wednesday’s Reactive Buying, Thursday generated a higher, wider Value Area. Thirty minutes pre-open today ES is printing at 1872, the 4mn poc. Very mixed with a lack of directional conviction making market a difficult call. Large Cap SPY is still leading Small Cap IWM and Tech QQQ. Breadth deteriorated yesterday, see 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 is printing at 187.73, the 7mn poc, IWM is printing below 111.48 (12mn poc), QQQ is at 86.32, the 8mn poc and DIA is printing above its Support at 163.40 (2yr poc).
Stocks>50dyma numbers: Nyse 49% (from 51%), Nasdaq 21% (from 23%), R2000 25% (from 28%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.71. 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: pre-open is printing below its maj 1/2R level (22.04).
– KEY Chart EURJPY: chart is printing below 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: has rallied back to the maj poc at 79.76, having tested last year’s low (78.92) yesterday.
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: On Thursday printed its highest level since November 2011. This test above the March was rejected though and chart is sharply lower today.
