Pre-open comment Tuesday 7th June
I marked Aggressive Selling on Monday, auctioning ES down to a low just above 1280 – a level that I thought might be attractive to Buyers (see yesterday’s pre-open comments). Overnight ES has rallied a little but stats suggest Monday’s red-at-bottom low will be tested today (8 out of 10). The Value Area was lower for the fourth consecutive day.
1280 or just above is potentially a level where Buyers may Respond.
First Level Resistance = 1314.50 (15dy poc)
Resistance = 1327 (6month poc)
ST Sentiment: My version of the Rydex Assets Ratio was down on Monday to 2.96 (from 3.49). Bull fund assets that I follow were down 8% to a 50day low. The extreme high reading of this indicator was 4.57 recorded in early May.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: 22day high today. Daily momentum (PriceOsc) is up. Longframe, chart made low in May on major 1/2R support (from 2008 high).
+ Dollar Index: 22day low today. Daily momentum (PriceOsc) is down. Chart prints back below 74.53, the 1/2R off May low – weak position.
? TLT: 11 day low today. Daily momentum (PriceOsc) is down.
imo these charts have a positive ST bias for equities.
