Pre-open comment Tuesday 12th May
Please read previous highlighted comments. I marked Aggressive Selling on Monday. The ST volatile behaviour of the Significant Buyers and Sellers continues with any attempt by either group to auction ES away from 2095.50 currently failing with this price continuing to be attractive. Chart is in an extended consolidation (three months now) which could continue until the 7mn poc (currently 2045.00) migrates – possibly to 2095.50. We know that Buying/Selling imbalances are less reliable when price is close to a poc but even so, price above/below 2095.50 (4mn poc) can be judged strong/weak price location and pre-open ES is printing below this level. Breadth needs to improve, see below.
Daytframe: 1/2R off April high at 2088.00 could come into play here intraday.
First Level Resistance = 2095.50 (4mn poc)
First Level Support = ES 2045.00 (7mn poc)
Stocks>50dyma numbers: Nyse 50% (from 51%), Nasdaq 45% (from 43%), R2000 39% (from 38%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 11.1. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: closed at its lowest level since November. Momentum is down and negative. Support at 117.14, maj poc.
Dollar Index: is currently printing below the 94.67 Support (12mn poc)
Gold GLD: closed below 115.12, the 18mn poc in a weak price location.
Oil USO: last week printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location.
EURUSD: printing very close to the major 1/2R (1.1241)
