Pre-open comment Monday 18th May
Last week I marked Significant Buying twice and Significant Selling once. As anticipated, the ten month control price migrated to 2095.50 and this is now the important level to monitor. As long as ES holds above that level it is in a strong price location. Price Momentum and Breadth numbers also improved and there was a marked rise in bearish sentiment which is another positive.
Support = 2095.50 (10mn poc)
CP Market Charts: Nyse turned positive, Nasdaq and R2000 turned neutral from negative, UK stayed positive.
Stocks>50dyma numbers: Nyse 57%, Nasdaq 47%, R2000 43%, UJK 64%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 10.18. The four month low is 9.91. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: last week printed its lowest level since November. The 12mn poc at 119.26 was probed and chart rallied on Friday. More important Support at 117.14, maj poc.
Dollar Index: below 94.67, the 12mn poc, and last week printed its lowest level since 22nd Jan.
Gold GLD: last week printed its highest level since February which was a probe into the Resistance at 117.60, the 1/2R off the November low.
Oil USO: last week printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location.
EURUSD: last week printed its highest level since February and above the major 1/2R (1.1241) which is holding today
