posted 08.52 a.m. est
pre-open comment Friday 3rd May
See yesterday’s highlighted comments. Tuesday’s green-at-top high has now been exceeded but Wednesday’s red-at-bottom low was not. Instead Buyers Responded on Wednesday (green-at-bottom) and the minor dayframe Support given pre-open yesterday at 1581 held as the low of the session. Buyers look to be back in control of the dayframe and new short trades are eliminated for me at least until Significant Selling is marked again.
%Stocks>50dyma numbers: Nyse 61% Nasdaq 50% R2000 49% Numbers >50 are considered supportive.
Minor dayframe Support = 1581 (25dy poc)
First Level Support = ES 1562 (1/2R off recent high)
Second Level Support = ES 1548.50 (5mn poc)
Rydex Assets Ratio: My version of the Rydex Assets Ratio was slightly lower on Thursday at 4.31 (from 4.66). Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts (+ or – or ? for equities).
+ Bonds TLT: Pre-open is printing below 123.42, the 1/2R Resistance off last July’s high.
? Oil USO: printing a 22day high today and approaching 34.17 Resistance (1/2R off 2009 low).
? Gold GLD: Fell steeply earlier this month to its lowest level for two years. Momentum is negative but up.
– Silver SLV: Has been weak since it double-failed at its maj poc in January and this month printed its lowest level since Oct 2010.
? Dollar Index: Printed a 45day low this week at the important Support at 81.35 1/2R level.
– EURUSD: Met Resistance yesterday at 1.3228 (1/2R off February high) and is currently printing back below the 24mn poc at 1.3070.
These charts are not clearly indicating a bias for equities.
