pre-open comment Thursday 7th June
Wednesday generated a higher, wider Value Area on increased Volume and I marked Aggressive Buying (green-at-top) for the second time this week. ES also rallied above the maj poc at 1307 (now Support) and as long as it can hold above this level it is in a much stronger price location. A Close to the week above Wednesday’s high at 1316 would be the first indication of stregth on the weekly timeframe.
First Level Resistance = 1341 (1/2R off March high – June contract)
First Level Support = 1307 (poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 2.92, up from Wednesday’s ratio at 2.25 which was a four month low. Also worth noting that the Rydex Money Market assets (investor class) reached a six month high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Chart printing below the Major poc at 1.2777 but technically oversold and momentum has turned up.
? Dollar Index: Prints well above the important level at 80.15 but technically overbought and momentum has turned down.
? TLT: Last week chart printed a new high but technically overbought and momentum has turned down.
daily technicals suggest the possibility of a turn here – therefore imo, in the ST, there is no obvious bias for equities
