emini Friday 31st May 2019
Thursday’s low came in at 2776, 12mn poc, see previous comments, but overnight that level was broken and ES declined quickly. Has printed below 2755. Bulls would want to see ES recover 2776 asap. Time below that level increases the odds that the major at 2718 will be tested.
Stocks>50dyma numbers: Nyse 26% (from 27%), Nasdaq 26% (from 27%), R2000 25% (from 27%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 15.55, a thre month low, having reached 23.93 on the 7th May, a seven month high.
Bonds – TLT: has today printed its highest level since November ’16. In the longer-term as long as TLT holds above the 121 major Support it is in a strong position.
Dollar Index: last week printed its highest level since May 2017. In the LT as long as the chart is printing above the major at 94.80 it is in a strong position.
Gold: GLD – price has been ranging around 121, the major poc, since mid-April. Looking for a higher low or a lower high above/below that level.
Oil: USO – last Thursday USO broke below the 12.79 Support, the 18mn poc, and fell sharply. Major Poc Support at 11.41.
GBPUSD: is in a weak position below 1.3130, the maj poc. The Support at 1.2915, the 1/2R off this year’s low, was broken earlier in the month and chart has fallen sharply from there. On Thursday GBPUSD printed its lowest level since early January.
EURUSD: last week printed its lowest level since June 2017. Price below 1.1310 keeps the chart in a weak LT position.
USDJPY: the major poc is at 111.17. Chart is currently in a weak position below that level.
