pre-open comment Wednesday 30th May
Significant Sellers were marked on Wednesday, Aggressively auctioning ES down to the major poc Support at 1307 but not below it. The 30dypoc migrated lower to 1314.50 which is now First Level Resistance. Pre-open ES prints between those two levels. The Selling imbalance means that new long trades are now eliminated for me, at least until Buying (green) is marked again. The Support at 1307 is critical and although the odds strongly favour the Bears (see highlighted comments) I will only assume further weakness if ES prints below that level.
First Level Resistance = 1314.50 (30dy poc)
First Level Support = 1307 (maj poc)
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.19. Friday’s ratio at 2.98 was a four month low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Major poc is at 1.2777. Chart currently prints below that level and on Wednesday printed its lowest level since July 2010.
– Dollar Index: On Wednesday the chart printed its highest level since September 2010.
– TLT: Is today printing a new high.
imo these charts have a negative bias for equities.
