posted 9.28 a.m. est
Pre-open Tuesday 11th May
Monday’s day session high was 1161.75. As suspected ES is having a little trouble overcoming the 1161.50 resistance. Value Area was higher and narrower on less volume although was well above average. If ES can overcome that level and consolidate above it will be in a much stronger price location. The 1/2R off the April high is 1136 (dotted) this may come into play either as support or resistance for a lower high.
I have Sellers in control but that could change. I cannot consider the long side until Significant Buying is marked.
Dayframe: I would consider playing the short side if ES cannot print above 1049 (Monday’s poc) early in the session but wouldn’t consider any ST trades if ES prints above the 1161.50 poc.
ST entiment: My version of the Rydex Assets Ratio was down from 1.94 to 1.74. That’s a two month low. Bull fund assets that I follow were down by 10% And the Rydex Money Market (Investor class) assets were up by more than 10%. That’s a definite increase in fear but Bear fund assets haven’t risen much so not enough to call this Bullish.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: prints below the 93.60 1/2 level
– EURUSD: still in a weak position; Price Osc down for 13 days
– UDX: still in a strong position; Price Osc up for 13 days
– TLT & IEF: remain above major levels;
in the main these charts are bearish for equities
