pre-open Tuesday 29th May 2018
On Friday the 12mn poc migrated to 2718. This has lifted the VAH and removed the Resistance at 2745, see Friday’s highlighted pre-open comments. But… ES currently prints below that level in what is now a weaker price location. If the poc remains at 2718 we need to see ES recover that level before assuming strength. Significant Selling (red) marked below 2718 would indicate further weakness.
Resistance = 2718.00 (12mn poc)
Possible Support = 2672 (previous poc)
Market Charts: All major market charts are positive.
Stocks>50dyma numbers: Nyse 60%, Nasdaq 67%, R2000 69%. numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 21.99. On 04/18, the ratio fell to 13.93, a 43 day low.
Bonds: TLT – is printing below 121.00, the major poc, in a weak LT price location but rallied strongly last week back above 118.50, the 6mn poc.
Dollar Index: has today printed its highest level since December.
Gold: GLD – on 05/11 there was a rejected probe into 125.23, the 4mn poc, and chart fell sharply from there. Note that Cash Gold found Support last week at 1286.50 its major poc. Cash below that level would be a weaker price location.
Oil: USO – early last week chart printed its highest level since November 2015 but has fallen sharply from there.
GBPUSD: in mid April the major Value Area High at 1.4212 was probed for the second time this year and was rejected again. The Support at 1.3965 (6mn poc) was then broken and at the end of last month the Support trendline off the 2016 low was broken. Has today printed its lowest level since November.
EURUSD: Last week EURUSD broke below 1.1755, the 1year poc Support and has today printed its lowest level since July.
USDJPY: The 6mn poc for this chart migrated to 107 six weeks ago and the chart has been printing up from that level. Early last week there was a rejected into 111.30, the 2year poc Resistance and the chart is lower from there.
