Pre-open comment Tuesday 26th May
Last week I marked Significant Buying twice and no Significant Selling. ES did no more than consolidate this higher price range but in the longer timeframe as long as it holds above 2095.50 it is in a strong price location. There is a minor, 15day poc at 2117.50 and price relative to this level is worth monitoring at the start of this week for early strength/weakness.
Minor First Level S/R = 2117.50 (15dy poc)
Major Support = 2095.50 (10mn poc)
CP Market Charts: Nyse turned negative; Nasdaq & R2000 stayed neutral
Stocks>50dyma numbers: Nyse 53%, Nasdaq 48%, R2000 44%. Numbers >50 are supportive.
Sentiment: 05/22: My version of the Rydex Assets Ratio ended the week at 11.60. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: last week printed its lowest level since November. Important Support at 117.14, maj poc.
Dollar Index: printing back above 94.67, the 12mn poc which is strong price location and today is printing above 96.76, the 1/2R off March high.
Gold GLD: last week a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected. There is important Support at 115.12, the 12mn poc – price below that level would indicate further weakness.
Oil USO: earlier this month 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: currently printing back below the major 1/2R (1.1241) in a weak price location
