Pre-open comment Monday 1st June
Significant Selling has not been marked since early May. Even though Buying has been marked five times during that time period it has not been particularly Effective with the attempted break higher mid month retracing and dayframe Buying not following-on (e.g. the green-at-top high last Wednesday). Even so, as long as ES prints above 2095.50 (10mn Time Support) it is in a strong LT price location and note that last week’s low was found at this level. Breadth numbers weakened again at the end of the week, see below. Bulls would want to see breadth measures improve.
Dayframe: the 30day poc migrated to 2107.50. This could be Support/Resistance at the start of this week and price relative to this level could provide a clue re ST strength/weakness.
First Level Resistance = 2117.50 (minor poc)
Major Support = 2095.50 (10mn poc)
CP Market Charts: All major U.S. Market Charts are now negative. U.K.turned neutral.
Stocks>50dyma numbers: Nyse 39%, Nasdaq 45%, R2000 39%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 11.60. The highest ratio in the database was at 14.06 on 03/02The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: in May probed the 12mn Support 119.26 and has rallied from there. Further Support at 117.14, maj poc.
Dollar Index: printing back above 94.67, the 12mn poc which is strong price location and currently printing above 96.76, the 1/2R off March high.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected and last week broke below 115.12, the 12mn poc indicating further weakness.
Oil USO: in May printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location but Momentum (PriceOsc) is down and negative.
EURUSD: currently printing back below the major 1/2R (1.1241) in a weak price location
