Pre-open comment Wednesday 8th June
Tuesday’s red-at-bottom low was tested on Wednesday and Aggressive Selling (red-at-bottom) was marked again.
Dayframe: Range for the week is about 23 points so far and average weekly range recently has been 32 to 34, so it is likely Monday’s high or Wednesday’s low will be tested and the range extended. Lower looks most likely; to test the red-at-bottom unless Buyers can hold above 1281 early today and make some progress – ST Sentiment suggests that is a possibilty (see below).
First Level S/R = 1281 (minor poc)
First Level Resistance = 1314.50 (15dy poc)
ST Sentiment: My version of the Rydex Assets Ratio was up slightly to 2.87 (from 2.74). Yesterday’s ratio was a 48day low and 40% down from the extreme for this indicator recorded in early May. Also Rydex Money Market Assets (investor class) have increased by 18% in 4 days. And, ISEE (equity-only) index came in at 125 yesterday which is the lowest reading since the March price low.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: 23day high on Wedesday. Daily momentum (PriceOsc) is up.
+ Dollar Index: 23day low on Tuesday. Daily momentum (PriceOsc) is down. Chart prints back below 74.53, the 1/2R off May low – weak position.
– TLT: Daily trend is up.
imo these charts are mixed and it is difficult to determine a ST bias for equities.
