posted 9.27 a.m. est
Pre-open comment Thursday 26th May
I marked Responsive Buying on Wednesday (green-at-bottom) this followed an overnight (Tuesday) test down to 1302.25 just above the 50day VAL at 1302 (same level today). See previous comments about this highlighted on the graphic.
Also note (I repeat) that time spent between 1308 and 1318 may cause important poc level at 1327 to migrate lower (most likely bearish). The nyse and nasdaq %Stocks numbers are close to 40, the CP market Timing System is still negative and price location is currently weak and therefore if ES stays below 1327 I remain very cautious. Bulls will be hoping that ES (and other major charts) can improve their weak price location before the end of the week. Other chart levels to monitor are IWM (4month poc 82.36; for SPY 133.15 (6month poc); QQQ 56.94 (9month poc).
Resistance = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 3.61 (from 3.65). The ratio reached 4.57 earlier this month which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
? EURUSD: 45day low on Monday. 4day high today. If chart closes strong today then Daily momentum (PriceOsc) will turn up. Support at the 1.3923 poc (12month) has so far held.
? Dollar Index: 35day high on Monday. 4day low today. If chart closes weak today then Daily momentum (PriceOsc) will turn down.
– TLT: 5month high last week. Chart corrected but found support at the level of the December and March highs and appears to be channelling up off the April low.
imo these charts are mixed and it is difficult to imply a ST bias for equities.
