Pre-open comment Wednesday 10th June
See Tuesday’s highlighted comments. Tuesday generated a third consecutive Value Area below 2098.50, the 10mn poc. This is weak price location. Looking at the distribution within the current range (last four months within March low and May high) the Value Area low is currently 2075.00 (dashed line). If the distribution is still valid (i.e. incomplete) we should see price probes below that level rejected, so I’m watching to see if ES comes back today. Acceptance of price around 2075.00 would be a negative. Also, Key Chart SPY found Support on Tuesday close to 207.92, its 9mn TS, so this is the other chart/level to watch closely.
First Level Resistance = 2098.50 (10mn poc)
Stocks>50dyma numbers: Nyse 33% (from 34%), Nasdaq 50% (from 51%), R2000 44% (from 45%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 10.54. 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: closed on Tuesday at an eight month low and below 117.14, the maj poc. This is very weak price location.
Dollar Index: has today probed below 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.
