pre-open comment Monday 7th May
Last week I marked Significant Selling three times and no Significant Buying. On Friday Aggressive Selling was marked on a day weak enough to test the 1366 poc.
Pre-open today ES has printed below the April lows and currently prints below 1366 which is now First Level resistance. This is weak price location and unless Significant Buying is marked back above 1366 I will remain extremely cautious here.
Chartprofit Market Timing System is now negative for all major Market Charts and %Stocks>50dyma numbers are less than 50.
First Level Resistance = 1366 (4month poc)
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.60. Wednesday’s reading at 5.43 was an extremely high reading, in fact I only have one reading in my database higher than this and that was on 3rd April at 5.64.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: has today broken below the four month poc Support at 1.3069.
? Dollar Index: printing back above 79.09 (12mnth poc) at a 12dy high.
– TLT: is printing above the maj poc at 117.18 at a 2month high.
imo these charts are looking more negative for equities.
