Wednesday’s day-session close indicated a first technical sign of weakness. Aggressive Buying was marked Monday. Wednesday’s day-session close was below Monday’s low (dashed line), see Tuesday’s highlighted comments on chart. Overnight ES has weakened and pre-open has printed below 3100. 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.
FTSE100: last week broke above 6312, the major 1/2R, but has broken back below that Support today.
Bonds TLT: A probe of the 6mn Resistance at 165.36 was rejected on 05/22 and TLT sold off. Last week broke below 159.43 which is the 1/2R off March high, but closed back above that level (now Support) on Wednesday.
Dollar Index: in April/May failed at two attempts to print above the 1/2R Resistance off March high, and then sold off from that rejection. Last week broke the 3yr Support at 97.38. Weak position.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 12.12. Tuesday’s ratio at 12.88 was a three month high. 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 94% (from 95%), Nasdaq 92% (from 94%), R2000 91% (from 94%). Numbers >50 are supportive.
