Pre-open comment Thursday 19th May
I marked Aggressive Buying (green-at-top) on Wednesday and a Higher, wider Value Area was generated above the 1327 poc which is Effective Buying.
Pre-open ES has printed back to the minor 1/2R off May high at 1344.75. Time printed above that level would confirm the minor strength seen last two days and a new high would be expected. If we see a strong end to the week I would hope to see confirmation from the Chartprofit Market Timing system. Nyse %Stocks>50ma number is now above 50 which is encouraging; Nasdaq number still lags below 50.
Resistance = 1344.75 (minor 1/2R off May high)
First Level Support = 1336 (30day poc)
Major Support = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down at 3.7 (from 3.85) – this was on an up day for the market – in the ST that’s probably bullish. Earlier in the month the ratio reached 4.57 which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: 30day low on Monday. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 28day high on Monday. Daily momentum is up.
? TLT: 5month high earlier in the week. 4day low today breaking minor support trendline off April low. Momentum – minor negative divergence
imo these charts are mixed but have a negative bias for equities.
