posted 05.40 a.m. est
pre-open comment Thursday 16th May
Wednesday generated another higher, wider Value Area. Significant Selling has not been marked for ten days.
%Stocks>50dyma numbers: Nyse 79% Nasdaq 69% R2000 73%. Numbers >50 are considered supportive.
First Level Support = ES 1626 (22dy poc)
Sentiment: My version of the Rydex Assets Ratio was lower again at 4.27 (from 4.77). And again this on a day when the market hit a new high. Rydex traders remain sceptical and from a contrarian viewpoint that’s usually supportive. Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts + or – or ? indicates bias for equities
? Bonds TLT: KEY CHART. Closed on Wednesday back above the major poc Support at 117.15. Time printed below that level would be weak price location. Momentum is down and negative.
– Oil USO: from the April low rallied back to the Resistance around 34.20. Only Closed once above it so far but time printed above this level would put the chart back into a strong price location. Momentum, although positive has turned down.
– Gold GLD: Fell steeply last month to its lowest level for two years. Momentum, although positive has turned down.
– Silver SLV: On Wednesday printed its lowest level since October 2010.
– Dollar Index: On Wednesday reached its highest price level since July last year.
– EURUSD: Printing back below 1.3070, the 24mn poc. There is Support at 1.2777, the major poc.
TLT is a Key Chart. Can it hold the major Support at 117.15?
