posted 09.05 a.m. est
pre-open comment Monday 3rd June
Friday’s SPY close was below Mon-Wed Hi-Lo Range so Sellers were active on the weekly timeframe for the first time this year.
On Friday I marked Aggressive selling again (red-at-bottom). The Value Area was overlapping/lower than Thursday’s and at the top of Friday’s range so this isn’t convincingly Effective Selling. Even so new long trades are eliminated for me at least until Significant Selling is marked again. Friday’s low came in at First Level Support (1626) and first sign of weakness in the LT would be time printed below that level. In the ST, price below 1653 (poc) is weak price location, Bulls would want to see price back above that level.
Breadth: Chartprofit Market Timing System remained positive for all Major Market Charts. %Stocks>50dyma numbers: Nyse 61%, Nasdaq 67%, R2000 68%, UK 69%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Resistance = ES 1653 (27dy poc)
First Level Support = ES 1626 (prev poc)
Sentiment: my version of the Rydex Assets Ratio ended the week at 5.05. Previous week the ratio reached 5.43 and I only have two readings higher than this in the database which were were at the market highs in April and September last year.
Supporting Charts + or – or ? indicates bias for equities
+ Bonds TLT: KEY CHART. printing below the major poc at 117.15. Time printed below this level is weak price location. Last week chart reached its lowest level since April 2012.
– Oil USO: Currently printing below the Resistance around 34.20 which is weak price location. Momentum is now negative and down.
– Gold GLD: Fell steeply in April to its lowest level for two years and that level was approached again in May.
– Silver SLV: In May printed its lowest level since October 2010.
– Dollar Index: In May printed its highest level since July 2010. Currently holding above the 82.75 poc.
? EURUSD: currently holding the major poc Support at 1.2777. There is Resistance just above last week’s high at 1.3070, the 24mn poc. Momentum, although negative, has turned up.
TLT is the Key Chart. i.e. price location relative to the major Support at 117.15.
