ES analysis indicates that on Tuesday intraday Sellers were active but ineffective.
ES analysis: Ineffective because ES still managed to generate a higher Value Area. The high of the session came in at 2118.00. We’re close to the 2120 target and I’m interested to see if Sellers will React. Price acceptance (time) at this level would be a further positive.
First Level Support = 2093.50 (16day TS)
Second Level Support = 2054.50 (maj poc)
SPY (S&P500 ETF) chart once again closed at its highest level since July last year.
Stocks>50dyma numbers: Nyse 73% (from 70%), Nasdaq 68% (from 67%), R2000 71% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 3.96. The ratio reached 5.27 on 04/26 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: On Thursday TLT closed back above 130.77, the 8mn poc, in a stronger price location, and on Friday gapped higher to close at its highest level since early February. Currently holding these levels.
Dollar Index: Had a very weak day on Friday following the jobs data. The Support at 93.95 (1/2R off the May low) has now been broken and the chart prints in a weak position.
Gold: GLD – last week the chart held 115.50 which was previously the major poc and also the April low. On Friday chart gapped higher and on Monday closed above 118.22, the maj poc, in a strong price location. Cash indicates a higher open today.
Oil: On Tuesday USO printed its highest level since December and today Oil Futures have reached the highest level since July last year.
EURUSD: Recently held the Support at 1.1084, the 1/2R off last year’s low and had a strong day on Friday finishing the week above 1.1198, the 3yr poc. Maintains that strong position today.
click on graphic to enalrge
