posted 09.20 a.m. est
Pre-open comment Wednesday 21st May
On Tuesday I marked Aggressive Selling (red-at-bottom). When Significant Buying (green) or Selling (red) is marked it is a useful “go with” or “do not go against” indicator in the short term. When price is located close to a poc or developing poc I have noticed that this indication is not so reliable as the poc level becomes attractive to price. This happened back in January
pre-open comment S&P 500 emini Thursday 8th January
as the 1835.50 poc was developing and could possibly be happening here with 1872.00. Even so, price below 1872 is weak price location and Breadth just deteriorated again while Supporting charts still have a negative bias for equities, see below.
Potential intraday Support/Resistance = 1872.00 (4mn poc)
Major Support = ES 1835.50 (maj poc)
Index ETFs, Pre-open: Key Chart IWM is printing below 111.48 (12mn poc), SPY is printing just above 187.73 (major poc), QQQ is printing above 86.32, (8mn poc) and DIA is printing just above 163.40 (2yr poc).
Stocks>50dyma numbers: Nyse 42% (from 50%), Nasdaq 25% (from 28%), R2000 26% (from 34%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slighty higher at 6.98 which is historically a high number. The highest being 8.39 on 03/13.
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: last week printed its highest level since June last year.
Dollar Index: printing above the maj poc at 79.76, having recently tested last year’s low (78.92).
Gold GLD: Pre-open GLD is printing “at” 124.12, its two year poc.
Oil USO: pre-open is now printing above 37.31, the 1/2R off 2011 high.
EURUSD: chart recently printed its highest level since November 2011. That test above the March high was rejected though and chart has fallen to the 1.3673 Support (12mn poc) where it has stalled.
