pre-open comment Monday 20th May
Last week I marked Significant Buying twice. So far at least, higher prices have not attracted a Significant Response from the Sellers. Significant Selling has not been marked for twelve days.
SPY closed on Friday above Mon-Wed Hi-Lo range which indicates Active, Effective Buying on the weekly timeframe. Active Sellers have not been marked on this timeframe during 2013.
Dayframe: First sign of ST weakness would be time printed below the minor (7day) poc which migrated higher on Friday to 1653.
Breadth: Chartprofit Market Timing System remained positive for all major Market Charts.
%Stocks>50dyma numbers: Nyse 81%, Nasdaq 71%, R2000 76%, UK 80%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (24dy poc)
Sentiment: My version of the Rydex Assets Ratio was lower on Friday at 4.28. Rydex traders remain sceptical and from a contrarian viewpoint that’s usually supportive. Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts + or – or ? indicates bias for equities
? Bonds TLT: KEY CHART. Printing almost at the major poc Support at 117.15. Time printed below that level would be weak price location. Momentum is down and negative.
? Oil USO: Printing almost at the Resistance around 34.20. Time printed above this level would put the chart back into a strong price location. Momentum, although positive is down.
– Gold GLD: Fell steeply last month to its lowest level for two years and that level was almost tested on Friday. Momentum is negative and down.
– Silver SLV: Pre-open has printed its lowest level since October 2010. Momentum is negative and down.
– Dollar Index: On Friday printed its highest level since July 2010. Momentum is positive and up.
– EURUSD: Printing close to Support at 1.2777, the major poc and has yet to break it.. Momentum is negative and down.
TLT is a Key Chart. Can it hold the major Support at 117.15?
