Pre-open Thursday 20th May
Pre-open ES has probed below the Major Support at 1094 which I suggested (pre-open yesterday) was likely. This is the level to watch today.
If ES opens below 1094 and quickly recovers back above it, followed by some consolidation above, then I’d say we will see a bounce of some degree based on the sentiment and the support in this area.
If ES prints value (time) below 1094 then the market may not be in a ranging mode as I suggested on Monday but more likely to extend this sell-off.
Either way; long side is eliminated for me on any timeframe.
ST entiment: My version of the Rydex Assets Ratio was down from 1.88 to 1.69. This is not major panic but it is a 50day low. VIX heading back up to 40 area.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: down from the 93.60 1/2R resistance. Daily Momentum is down but there is support at 90.40.
? EURUSD: Trend down but Daily Momentum was up for first time in 20 days
– UDX: currently printing above the daily chart resistance at 85.14; Price Osc up for 20 days.
– TLT & IEF: remain above major levels and momentum is up.
in the main these charts are not supportive of equities.
