Pre-open comment Tuesday 14th June
Note: will be switching to the September contract tomorrow.
In the p.m. on Monday, a test below last week’s low was quickly rejected and ES is now printing above the 14dy poc at 1282.50. As I said pre-open yesterday this is a “first minor sign of strength”.
LT analysis is negative but ES may work higher here in the ST (see Sentiment below). If so, the First Level Support at 1273.50 should hold or at least reject a test. Time spent back below that level would suggest more weakness.
First Level S/R = 1282.50 (14dy poc)
Major Resistance = 1327 (6month poc)
First Level Support = 1273.50 (minor poc)
ST Sentiment: My version of the Rydex Assets Ratio was slightly lower at 2.25 (from 2.35) a 58day low. As mentioned previously, Sentiment readings, including this indicator are consistent with those usually associated with market lows of some degree.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Minor 1/2R off May high at 1.4455 is a potential level of Resistance.
? Dollar Index: Minor 1/2R off May high at 74.53 is a potential level of Support.
? TLT: Daily trend is up, Momentum (PriceOsc) is down.
imo these charts are mixed and it is difficult to determine a ST bias for equities.
