ES emini 30th May 2018 – pre-open from Chartprofit
See yesterday’s highlighted comments. ES generated a lower, wider Value Area on Tuesday. Has rallied back above 2705 overnight but as long as it prints below 2718, the 12mn poc, ES is in a weak price location. 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)
Stocks>50dyma numbers: Nyse 56% (from 60%), Nasdaq 65% (from 67%), R2000 68% (from 69%). numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 24.0, the highest since 02/02 and only six ratios higher than this in the database. The spike in the ratio is largely due to a fall in Bear Fund Assets; Bull Fund Assets remain well down from the peak late last year. Even so a rise in the ratio on a down day for the market has not been a bullish indication historically.
Bonds: TLT – has rallied very strongly over the last four days and closed on Tuesday back above 121.00, the major poc, in a strong price location.
Dollar Index: on Tuesday printed its highest level since December but is lower today.
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 to close on Tuesday at a 29day low.
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. On Tuesday printed its lowest level since November.
EURUSD: Last week EURUSD broke below 1.1755, the 1year poc (now Resistance) and on Tuesday printed its lowest level since July. Up today.
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.
