Pre-open comment Tuesday 2nd June
Both levels we are currently monitoring came into play. An early rally on Monday stalled at 2117.50, our First Level Resistance and overnight the Major Support at 2095.50 (10mn Time Support) was briefly probed. As I wrote last week “Bulls would want to any test of 2095.50 quickly rejected”. Price printing below that level would be weaker price location. Bulls would want to see breadth measures improve, see below.
First Level Resistance = 2117.50 (minor poc)
Major Support = 2095.50 (10mn poc)
Stocks>50dyma numbers: Nyse 41% (from 39%), Nasdaq 46% (from 45%), R2000 41% (from 39%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 11.82, a 20day high. Bear fund assets that I follow have fallen back and are close to the extreme low level of earlier in the year. Thta’s a concern. The highest ratio in the database was at 14.06 on 03/02The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: in May probed the 12mn Support 119.26 and rallied a little from there. Further Support at 117.14, maj poc.
Dollar Index: printing back above 94.67, the 12mn poc which is LT strong price location. Dollar Bulls would want to see price printing above 96.76, the 1/2R off March high.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected and last week broke below 115.12, the 12mn poc indicating further weakness.
Oil USO: in May printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location but Momentum (PriceOsc) is negative.
EURUSD: currently printing back below the major 1/2R (1.1241) in a weak price location
