posted 9.25 a.m. est
Pre-open Friday 14th May
yesterday: >>There is a good chance that ES will test down into that First Level Support today (1161.50) and this would be a good gauge of ST strength<<
1161.75 was the low until late in the session, ES then broke below the 1161.50 poc. Significant Selling was marked twice but this was Ineffective because the the Value Area was overlapping. However, until the weekly Market Timing Charts tell us otherwise I now have negative (red) as the most recent mark on both weekly and daily timeframes.
1161.50 is now First Level Resistance and the 1/2R at 1136 is First Level Support.
ST sentiment: My version of the Rydex Assets Ratio was down from 1.9 to 1.8. Sentiment indicators not very useful at the moment.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: down from the 93.60 1/2R resistance.
– EURUSD: a new 14month low today; Price Osc down for 16 days
– UDX: currently printing above the daily chart resistance at 85.14; Price Osc up for 16 days.
– TLT & IEF: remain above major levels;
these charts are not supportive of equities
The Significant Selling marked on Thursday and the fact that ES prints back below 1161.50 eliminates the long side for me. In the Dayframe I would expect more weakness if the 1/2R support at 1136 is broken but the Longframe has a ranging feel about it. If that is the case then 1094 would be the major support on the downside.
