Pre-open comment Tuesday 9th June
Monday’s Value Area, like Friday’s, was printed entirely below 2098.50, the 10mn poc. This is weak price location. Aggressive Selling was marked and these red-at-bottom lows are tested within a day (or two) 80% of the time. For these reasons I am cautious here and at these levels will not look at the long side if ES prints below 2098.50.
First Level Resistance = 2098.50 (10mn poc)
Breadth numbers deteriorated.
Stocks>50dyma numbers: Nyse 34% (from 38%), Nasdaq 51% (from 54%), R2000 45% (from 48%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.72. The 4month low for the ratio is 9.85. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: declined to an eight month low last week and has reached the major Support at 117.14, the maj poc. Price below this Support would indicate further weakness.
Dollar Index: found low last week at 94.67, the 12mn Support. Price below this level would be weak price location.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected and last week closed at its lowest level since March.
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.
EURUSD: currently printing just below 1.1340, the 12mn Time Resistance. Price above this level would be stronger price location.
