pre-open comment Friday 8th June
On Thursday Significant Sellers were marked Responding immediately after the Open (red-at-top). This was a session where Sellers were Active but a higher Value Area was generated for the third consecutive day and above the major poc at 1307 so I cannot call this Effective Selling. Bulls would want to see ES printing time above 1307 and Buying marked above that level. With the LT analysis still looking negative this would only be the first sign of strength. Sellers marked below 1307 would indicate further weakness. We may see consolidation centred around that poc and overnight ES has printed back to that level.
First Level Resistance = 1341 (1/2R off March high – June contract)
First Level Support = 1307 (poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 2.41. Wednesday’s ratio at 2.25 was a four month low. The ISEE (equity-only) index recorded a very low number on Thursday at 90. I have only seen fifteen daily readings below 100 in almost five years. The 10dyma has been lower than the current reading – on 18th May it reached its lowest level since June 2010.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Chart printing below the Major poc at 1.2777 but momentum has turned up.
? Dollar Index: Prints well above the important level at 80.15 but momentum has turned down.
? TLT: Last week chart printed a new high but momentum has turned down.
daily technicals suggest the possibility of a turn here – therefore imo, in the ST, there is no obvious bias for equities
