Pre-open comment Tuesday 3rd May
Significant Selling was marked on Monday and although this was Ineffective Selling (overlapping/higher and wider Value Area) Long Trades are now eliminated for me until Significant Buying (green) is marked again. Monday’s session low was at the support given pre-open although ES currently prints just below this level.
In the longer timeframe as long as ES holds above 1327 it is in a strong price location.
Dayframe: Intraday support I monitor includes the 40period lower Bollinger Band on the 60minute chart. Currently ES prints close to this lower band and Responsive Buyers will often step in here (as they did on the 25th and 26th April) when Buyers are strongly in control. Look for ES to be auctioned back above 1354 shortly after the open. If this does not occur and ES prints time below 1354 post-open then further weakness is likely.
First Level S/R = 1354 (14day poc)
6month Support = 1327
ST Sentiment: My version of the Rydex Assets Ratio was up on Monday to 4.51 which is the highest ratio I have in my database.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: On Monday this chart printed its highest level since December 2009.
+ UDX: On Monday this chart printed its lowest level since July 2008.
– TLT: On Friday this chart printed a 30day high.
imo these charts are mixed but have a postive bias for equities.
