Pre-open comment Monday 16th May
It is rare to see Significant Buyers and Sellers so active at the same time. Last week I marked two instances of Significant Buying and three instances of Significant Selling. However, all of last week’s price action took place entirely above 1327 which kept ES in a strong price location. Pre-open today ES has printed as low as 1326.25.
Chartprofit Market Timing System is now negative for Nyse, Nasdaq and R2000. For that reason I anticipate a break of the 1327 support at some point this week but until that happens ES remains in a strong price location.
Effective Buying above the 10day poc at 1337 would be first minor indication of strength and Effective Selling below 1327 would indicate further weakness.
First Level Resistance = 1337 (minor 10day poc)
Major Support = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio finished the week at 3.96 which is a very high number. Earlier in the month the ratio reached 4.57 which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: New 30day low today. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 27day high on Friday. Daily momentum is up.
? TLT: Last week ended almost unchanged on week before which reached a five month high. Daily momentum has been down for five days.
these charts most likely have a negative ST bias for equities.
