posted 09.06 a.m. est
Pre-open comment Tuesday 27th May
ES closed on Friday above the Mon-Wed Hi-Lo Range indicating Buyers Active. The four major stock index ETFs closed the week in strong price locations, see charts in eBook. Key chart IWM needs to hold above 111.48, its 12mn poc. Breadth still needs to confirm the improved ST analysis.
First Level Support = 1872.00 (maj poc)
Second Level Support = ES 1835.50 (previous poc)
Breadth: CP Market Timing System is still negative for the Nyse, Nasdaq and UK. Turned neutral for R2000.
Stocks>50dyma numbers: Nyse 56%, Nasdaq 36%, R2000 41%, UK 44%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.68. Market lows this year have corresponded to ratios just below 5. VIX closed at 11.36 on Friday, the lowest since March 2013.
Supporting Charts (+ or – shown as implied bias for equities)
? KEY Chart Financial Sector XLF: Pre-open is printing just above 22.04, its Major 1/2R level.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high.
Bonds TLT: strong price location and Momentum is positive.
Dollar Index: strong price location above 79.76, the maj poc and printed a 33day high on Friday.
Gold GLD: is weaker pre-open today printing below 124.12, its two year poc.
Oil USO: printing above 37.31, the 1/2R off 2011 high, and last week reached its highest level since September.
EURUSD: printing just below the 1.3673 Support (12mn poc) in a weaker price location.
