posted 09.24 a.m. est
Pre-open comment Tuesday 6th May
On Monday Buyers Reacted (green-at-bottom) to a lower open but managed to generate a fourth consecutive Value Area above First Level Support at 1871.50. ES needs hold above this level to remain in a strong price location in the ST.
First Level Support = 1871.50 (3mn poc)
Second Level Support = 1849.50 (minor 1/2R)
Major Support = ES 1835.50 (maj poc)
Pre-open, SPY prints above 187.73 (7mn poc), IWM prints below111.48 (12mn poc), QQQ prints above 86.32 (8mn poc) and DIA prints above 163.40 (2yr poc).
Stocks>50dyma numbers: Nyse 53% (from 55%), Nasdaq 27% (from 28%), R2000 30% (from 32%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 6.66. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
– KEY Chart Financial Sector XLF: pre-open today prints below its maj 1/2R level (22.04).
+KEY Chart EURJPY: chart is printing above 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: recently tested and held, the 2year poc Support at 107.24 and last week printed its highest level since June last year.
Dollar Index: below 79.76, the maj poc and today is printing close to last year’s low.
Gold GLD: still printing below 127.20, its 18mn poc.
Oil USO: printing below 37.31, the 1/2R off 2011 high but has stalled at the 36.11 Support (1/2R off 2013 high).
EURUSD: Printing above 1.3673, the 12mn poc Support and today prints close to the March high.
