posted 09.02 a.m. est
Pre-open comment Tuesday 13th May
See yesterday’s highlighted comments. On Monday ES gapped higher and Aggressive Buying was marked. ES needs to hold above 1872 to maintain its strong price location. Pre-open today chart has printed a new high above April’s high. Breadth improved, see below and our Key Equity ETF chart, IWM, closed above 111.48 (12mn poc) confirming the strong price location of the other Index ETF charts.
First Level Support = 1872.00 (4mn poc)
Major Support = ES 1835.50 (maj poc)
Index ETFs: Pre-open, SPY is printing above 187.73, the 7mn poc at a new high, IWM is printing above 111.48 (12mn poc), QQQ is printing above 86.32, the 8mn poc and DIA is printing above 163.40 (2yr poc) at a new high.
Breadth: The CP Market Timing System is now negative for all major Market Charts. Stocks>50dyma numbers: Nyse 60% (from 50%), Nasdaq 32% (from 24%), R2000 42% (from 29%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.62. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: pre-open is printing above its maj 1/2R level (22.04).
– KEY Chart EURJPY: chart is printing below 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: strong price location above 2year poc Support at 107.24. Momentum, although positive is down.
Dollar Index: rallied strongly back above the maj poc at 79.76, having tested last year’s low (78.92). Today prints a 24dy high.
Gold GLD: still printing below 127.20, its 18mn poc in a LT weak price location.
Oil USO: printing below 37.31, the 1/2R off 2011 high but has stalled at the 36.11 Support (1/2R off 2013 high).
EURUSD: Last week the chart printed its highest level since November 2011. This test above the March high was rejected though and the chart has sold off from there with Support a little lower at 1.3673 (12mn poc).
