posted 08.10 a.m. est
pre-open comment Tuesday 14th May
Monday’s session generated a higher, wider Vaue Area. 1626 attracted more time and is now the 21 day poc. Overnight this level has provided Support. Currently ES is holding this higher range and no Significant Response from the Sellers has been marked.
%Stocks>50dyma numbers: Nyse 74% Nasdaq 64% R2000 66%. Numbers >50 are considered supportive.
First Level Support = ES 1626 (21dy poc)
Second Level Support = ES 1581 (poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 4.83 (from 4.62). Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts (+ or – or ? for equities). UNCHANGED
+ Bonds TLT: Has turned down from 123.42, the 1/2R off last July’s high. Momentum turned negative. There is Support at 117.15, the major poc.
? Oil USO: printing very close to the important Resistance around 34.20. Time printed above this level would put the chart back into a strong price location. Momentum has turned positive.
? Gold GLD: Fell steeply last month to its lowest level for two years. Momentum has turned positive.
– Silver SLV: Has been weak since it double-failed at its maj poc in January and last month printed its lowest level since October 2010. Momentum has turned positive.
– Dollar Index: Back in a strong price location above 82.75, the 2month poc.
– EURUSD: Met Resistance last week at 1.3228 (1/2R off February high) and is now printing back below 1.3070, the 24mn poc.
Bonds look positive for equities. Dollar looks negative for equities. Mixed for now.
