posted 9.23 a.m. est
Pre-open comment Thursday 2nd June
On Wednesday there was both Responsive and Aggressive Selling marked. The Value Area was lower and wider so this is Effective Selling. Long Trades eliminated for me until Significant Buying is marked again and at current levels that would need to be above 1327.
The CP Market Timing System (LT) is negative and the Profile analysis presented here (ST) indicates lower. With ES currently printing back below the major poc at 1327 further weakness is likely – at least a further test of the 50dyVAL which recently found Responsive Buying. 50dyVAL has shifted slightly lower to 1298.
Resistance = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down on Tuesday to a 28day low at 2.92. On Wednesday with the Market sharply lower the ratio was up; to 3.54. The extreme high reading of this indicator was 4.57 recorded earlier this month.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Daily momentum (PriceOsc) is up. Last week’s price bar was a bullish reversal bar. 1/2R off May high is 1.45 – if EURUSD prints time above that level the chart will be in a strong position and further strength would be expected.
+ Dollar Index: Daily momentum (PriceOsc) is down. Last week’s price bar was a bearish reversal bar. 1/2R off May low is 74.53 – if UDX prints time below that level the chart will be in a weak position and further weakness would be expected.
– TLT: Chart is holding the Support trendline off the April low has overcome poc Resistance and Daily momentum is up.
imo these charts are mixed and it is currently difficult to imply a ST bias for equities.
