posted 9.28 a.m. est
Pre-open Friday 21st May
High on Thursday was 1094 and early in the session. This puts ES in a weak position and possibility of another sharp break (see comments from Monday, left). I cannot be long at least until Effective Buying is marked above 1094.
ST entiment: My version of the Rydex Assets Ratio was down slightly from 1.7 to 1.4, a new 50 day low. ISEE (equity only) Index came in at 100, the lowest number since June 2008. The VIX spiked above 45, the highest reading since March 2009.
LT Sentiment: AAII (public) poll reported Bulls at 41.3% (that’s up) and Bears at 33.7% (that’s down). This is not Bullish (contrarian).
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: prints below the 90.40 poc. Price Osc up for 9 days.
? EURUSD: Trend down but Daily Momentum was up for second day.
– UDX: currently printing above the daily chart resistance at 85.14 (low so far today 85.13)
– TLT & IEF: Strongly up. IEF hit a new 12 month high on Thursday.
these charts are not supportive of equities.
