emini pre-open 15th June 2020
Aggressive Buying (green-at-top) was marked on Monday 06/08. Wednesday’s day-session close was below Monday’s low (dashed line) which was a first sign of weakness, see last Tuesday’s highlighted comments. ES fell sharply on Thursday. Aggressive Selling was marked on Thursday and that red-at-bottom low was retested on Friday.
Resistance is at 3044, the 1mn poc. Price printing time back above that level would be a positive here. Note that 3044 was Resistance twice intra-day on Friday. First Level Support is at 2926.0, the 2yr poc. The most important Support is at 2719, the maj poc. ES needs to hold this level to maintain a strong position in the longer timeframe.
Sentiment: My version of the Rydex Assets Ratio ended the week at 10.06. SPX has recovered more than 80% of its decline from this years high and the ratio less than 30% – this is a positive for the market. The ratio fell to 3.35 on 03/17, the lowest since early 2016. The ratio reached 28.62 on 12/27, the highest reading in my database.
Stocks>50dyma numbers: Nyse 82%, Nasdaq 76%, R2000 75%. Numbers >50 are supportive.
