posted 08.16 a.m. est
Pre-open comment Thursday 1st May
Wednesday’s session generated a Value Area above 1871.50, the 3mn poc. Aggressive Buying was marked (green-at-top) for the first time in nine days and Sellers have not been marked for twelve days. If ES can hold above 1871.50 it is in a strong position. Ninety minutes pre-open SPY, DIA and QQQ are in stronger price locations. Small Caps are still lagging though. R2000 breadth is not Supportive, see below, and IWM remains below its 12mn poc at 112.27. This is a Key Chart/Level today.
First Level Support = 1871.50 (3mn poc)
Second Level Support = 1849.50 (minor 1/2R)
Major Support = ES 1835.50 (maj poc)
Stocks>50dyma numbers: Nyse 53% (from 50%), Nasdaq 26% (from 24%), R2000 31% (from 29%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.63. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: pre-open today prints below its maj 1/2R level (22.04).
+KEY Chart EURJPY: chart is printing above 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: recently tested and held, the 2year poc Support at 107.24 and on Friday printed its highest level since June last year.
Dollar Index: printing below 79.76, the maj poc, at a twelve day low.
Gold GLD: still printing below 127.20, its 18mn poc.
Oil USO: weaker price location. printing a nineteen day low today below 37.31, the 1/2R off 2011 high and pre-open today below 36.11, the 1/2R off 2013 high.
EURUSD: Printing above 1.3673, the 12mn poc Support.
