emini analysis 31st May 2017 – pre-open
Dayframe: See yesterday’s highlighted pre-open comments. ES did find Resistance at 2414 on Tuesday. That minor poc has now migrated slightly lower to 2411.50 and price relative to that level may be a useful guide to ST strength/weakness. Pre-open ES prints above that level.
In the longer timeframe, here’s the Support:
First Level Support = 2384 (5mn poc)
Second Level Support = 2353 (poc)
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 8.91. Last Wednesday’s ratio was 7.75, a 71 day low, and as I wrote “this is a contrarian indicator so this is most likely a positive”. On 1st March the ratio reached 14.02, the second highest ratio in the database.
Stocks>50dyma numbers: Nyse 49% (from 52%), Nasdaq 46% (from 50%), R2000 42% (from 46%).
Numbers >50 are supportive. The market was strong on Thursday but these numbers didn’t improve much. Hopefully they’ll pick up if market pushes higher. Better to see a broad participation.
Bonds: TLT – last nine days have been printed back above 121.63, the 8mn poc, in a strong price location.
Dollar Index: rallied back from the March low to probe 101.00, the major poc, in early April. That probe into Resistance was rejected. Chart remains in a weak price location.
Gold: closed above 119.84, the maj poc, in a stronger price location. Time printed above that level would be a positive.
Oil: USO – closed on Tuesday very close to 10.28, the 4mn poc. Price below that level is weak price location. Key chart.
GBPUSD: In the LT, as long as chart holds above above 1.2478, the maj poc, it is in a strong price location.
EURUSD: last month the chart tested the Support at 1.0597, the 7mn poc, and held. Has rallied from there. Last week printed its highest level since November.
USDJPY: earlier in the month the Resistance at 113.61 (4mn poc) was tested, but that test looks to have been rejected.
click to enlarge graphic
