Pre-open comment Monday 9th May
Last week I marked two instances of Significant Selling and no Significant Buying. The major poc Support at 1327 was tested very briefly on Thursday and the minor 1/2R tested briefly on Friday. Effective Selling below 1327 or Effective Buying above 1349.50 will indicate further weakness/strength. Long trades eliminated for me since session Close 2nd May.
Weekly Structure: Sellers Active on this timeframe but Ineffective (see eBook).
Market Timing System: Nyse & R2000 turned negative. Nasdaq turned neutral.
First Level S/R = 1335 (18day poc)
Resistance = 1349.50 (minor 1/2R)
Support = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio closed the week at 3.88 which is very high historically. Last Tuesday’s ratio of 4.57 was the highest ratio I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Wednesday printed the highest level since December 2009 but Friday chart printed an 12day low.
+ UDX: Wednesday printed the lowest level since July 2008 but Friday chart printed an 11day high.
– TLT: Thursday printed its highest level since early December.
imo these charts are mixed and do not have an obvious bias for equities.
