pre-open comment Tuesday 21st May
Monday generated a higher, narrower Value Area on less Volume.
Dayframe: the minor (8day) poc migrated higher on Monday to 1663.50. This could be intraday S/R today.
%Stocks>50dyma numbers: Nyse 82%, Nasdaq 71.5%, R2000 77%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (24dy poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 4.67. Money Market assets reached a 25day low and other ratios of Rydex data I follow are quickly picking up. Early warning?
Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts + or – or ? indicates bias for equities
? Bonds TLT: KEY CHART. Printing almost at the major poc Support at 117.15. Time printed below that level would be weak price location. Momentum is down and negative.
? Oil USO: Closed above the Resistance around 34.20. Time printed above this level would put the chart back into a strong price location. Momentum, although positive is down.
– Gold GLD: Fell steeply last month to its lowest level for two years and that level was almost tested on Friday. Momentum is negative and down.
– Silver SLV: On Monday printed its lowest level since October 2010. Momentum is negative and down.
– Dollar Index: On Friday printed its highest level since July 2010. Momentum is positive and up.
– EURUSD: Printing close to Support at 1.2777, the major poc and has yet to break it.. Momentum is negative and down.
TLT is a Key Chart. Can it hold the major Support at 117.15?
