posted 08.00 a.m. est
pre-open comment Tuesday 28th May
SPY closed on Friday within Mon-Wed Hi-Lo range which does not indicate a bias on the weekly timeframe. Active Sellers have not been marked on this timeframe during 2013.
Friday generated an overlapping/lower, narrower Value Area. First Level Support at 1626 has held. Significant Selling marked below this level would be an indication of weakness on the longer timeframe. Bulls would hope the Support holds. On Friday, there was no Significant Buying to mark on the ES chart but I did mark Responsive Buying on the R2000 Futures chart.
Dayframe: Overnight ES has printed as high as 1663.75. The 13day (minor) poc at 1653 may be worth monitoring for intraday Support/Resistance and a clue re ST direction.
Breadth: Chartprofit Market Timing System remained positive for all major Market Charts.
%Stocks>50dyma numbers on Friday: Nyse 70% (week’s high 82%), Nasdaq 68% (week’s high 71.83), R2000 72% (week’s high 77.06), UK 72% (week’s high 82%). Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = ES 1626 (30dy poc)
Sentiment: Sentiment indicators are suggesting over optimism, see eBook. e.g. my version of the Rydex Assets Ratio ended the week at 5.03. Wednesday’s ratio was 5.43 and I only have two readings higher than this in the database which were were at the market highs in April and September last year.
Supporting Charts + or – or ? indicates bias for equities
+ Bonds TLT: KEY CHART. Pre-open is printing below the major poc at 117.15. Time printed below this level is weak price location. Momentum is down and negative.
– Oil USO: Currently printing below the Resistance around 34.20 which is weak price location. Momentum, although positive is down.
– Gold GLD: Fell steeply last month to its lowest level for two years and that level was approached again last week. Momentum is negative and down.
– Silver SLV: Last week printed its lowest level since October 2010. Momentum is negative and down.
– Dollar Index: Last week printed its highest level since July 2010. Momentum is positive and up.
? EURUSD: currently holding the major poc Support at 1.2777. However, Momentum is negative and down.
TLT is the Key Chart. i.e. price location relative to the major Support at 117.15.
