Pre-open comment Thursday 28th May
See previous highlighted comments. Support was found at the 10mn Time Support at 2095.50 on Tuesday and has held so far (see chart). As long as ES prints above this level it is in a strong LT price location. On Wednesday I marked Aggressive Buying (green-at-top) and there has been no Significant Selling marked for eleven days. Breadth numbers improved but still below 50% – would be a positive to see these above 50.
Dayframe: price relative to the minor price band between 2117.50 (18dy poc) and 2115.00 (1/2R off May high) could provide a clue re ST strength/weakness.
Minor First Level S/R = 2117.50 (18dy poc)
Major Support = 2095.50 (10mn poc)
Stocks>50dyma numbers: Nyse 47% (from 41%), Nasdaq 48% (from 41%), R2000 44% (from 36%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.87. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: last week printed its lowest level since November and probed the 12mn Support 119.26. Further Support at 117.14, maj poc.
Dollar Index: printing back above 94.67, the 12mn poc which is strong price location and currently printing above 96.76, the 1/2R off March high.
Gold GLD: last week a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected and on Tuesday broke below 115.12, the 12mn poc indicating further weakness.
Oil USO: earlier this month printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location but Momentum (PriceOsc) is down and now negative.
EURUSD: currently printing back below the major 1/2R (1.1241) in a weak price location
