posted 09.10 a.m. est
pre-open comment Friday 31st May
Thursday’s session generated a higher, narrower Value Area on less Volume. No follow through from the Buyers and overnight ES has seen weakness, currently printing below yesterday’s session low. Bulls would want to see price back above 1653 and Significant Buying marked above that level. First sign of weakness in the LT would be time printed below 1626.
Dayframe: As I wrote yesterday, in the ST, price below 1659, the minor 1/2R (and particulary below 1653poc) is weak price location.
%Stocks>50dyma numbers: Nyse 68%, Nasdaq 71%, R2000 74%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Resistance = ES 1653 (26dy poc)
First Level Support = ES 1626 (prev poc)
Sentiment: my version of the Rydex Assets Ratio was slightly lower at 4.80. Last week the ratio reached 5.43 and I only have two readings higher than this in the database which were were at the market highs in April and September last year.
Supporting Charts + or – or ? indicates bias for equities
+ Bonds TLT: KEY CHART. printing below the major poc at 117.15. Time printed below this level is weak price location. On Tuesday reached its lowest level since April 2012.
– Oil USO: Currently printing below the Resistance around 34.20 which is weak price location. Momentum is now negative and down.
– Gold GLD: Fell steeply last month to its lowest level for two years and that level was approached again last week. Momentum, although negative, has turned up.
– Silver SLV: Last week printed its lowest level since October 2010.
– Dollar Index: Last week printed its highest level since July 2010.
? EURUSD: currently holding the major poc Support at 1.2777. There is Resistance just above today/yesterday high at 1.3070, the 24mn poc.Momentum, although negative, has turned up.
TLT is the Key Chart. i.e. price location relative to the major Support at 117.15.
