Pre-open comment Monday 23rd May
The Chartprofit Market Timing System is negative for all Major Market Charts.
%Stocks>50ma numbers for both Nyse and Nasdaq are below 50.
Last week ES (and NQ) retraced 50% of the decline from the early May high (dotted on chart) but could not overcome that important Resistance. Friday’s high came in at Thursday’s poc (weak pattern) followed by a sell-off to close back at the 1327 major poc. In line with European weakness today, ES is currently printing well below that level and will therefore start this week in a weak price location. Other major charts, e.g. SPY, IWM also start the week below their important levels.
Resistance = 1327 (6month poc)
The 50day VAL comes in at 1299 and if the major trend of the market is still up Buyers will very likely Respond to a test of this level should it occur this week.
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 3.26, a 20day low. Although that’s still historically high it is 28% down from the extreme of 4.57 recorded earlier this month.
Supporting Charts (+ or – or ? for equities).
– EURUSD: 45day low today. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 35day high today. Daily momentum is up.
? TLT: 5month high last week but Daily momentum is down.
imo these charts are mixed and bias for equities is currently unclear.
