posted 9.28 a.m. est
Pre-open Tuesday 25th May
ES didn’t even manage a probe up to 1094 on Monday and closed weakly. As I suggested it might there has been another sharp sell-off and pre-open ES has been as low as 1036.75. The ST sentiment shows enough bears that we should be looking for a short term low at least. Risk is too high for me to go long on any time frame but I’m thinking the Buyers may well respond if price is offered below 1030. That would be a test of the February low.
I also remind myself that I have Sellers in control of the dayframe since close 27th April and the ChartProfit Market Timing system is still negative. Just should prevent me doing anything rash.
ST sentiment: My version of the Rydex Assets Ratio was up slightly from 1.1 to 1.3.
(1.1 is the lowest level since July 2009). It is worth noting that historically when this ratio reaches a level below 1 a price low is usually close.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: Price Osc dn for 10 days.
– EURUSD: Trend still down and close to the low set last week.
– UDX: currently printing above the daily chart resistance at 85.14
– TLT & IEF: up again.
these charts are not supportive of equities.
