posted 9.22 a.m. est
Pre-open Thursday 13th May
There was Significant Buying marked on Wednesday but the Value Area was higher and narrower and volume was reduced so this was not Effective Buying. Price location is improved with ES now printing above 1161.50. There is a good chance that ES will test down into that First Level Support today and this would be a good gauge of ST strength.
Second Level support is 1136, the 1/2R off the April high.
Re: %Stocks>50dyma. nyse, nasdaq, sp500, R2k now show more than 50% stocks > 50dyma. This is improving breadth.
ST sentiment: My version of the Rydex Assets Ratio was up from 1.7 to 1.9.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: down today from the 93.60 1/2R resistance.
– EURUSD: close to a new 14month low; Price Osc down for 15 days
– UDX: again probing the daily chart resistance at 85.14; Price Osc up for 15 days.
– TLT & IEF: remain above major levels;
these charts are not supportive of equities
The Market Timing Charts (weekly) are negative but breadth looks to be improving, I have Sellers in control of the dayframe since close 27th April but that could change, ES is in a stronger price location (above 1161.50), sentiment indications are not strong enough to be useful but supporting charts are negative. This is too mixed to make a directional call.
