S&P 500 emini pre-open 11th June
posted 08.42 a.m. est
I marked Reactive Buying (green-at-bottom) on Tuesday but if ES prints 1944 after the Open today it negates any ST positive implications of that imbalance. One hour pre-open ES is printing below that level on news that the World Bank downgraded its global growth outlook. ST Bulls would want to see Key Chart IWM holding the 114.0 Support (1/2R off March high). See Sentiment below.
As long as ES holds above the minor poc at 1922.50 it is in a strong ST price location and only price below 1872 would be a sign of weakness in the LT.
Dayframe Support = 1922.50 (min poc)
ES First Level LT Support = 1872.00 (maj poc)
Stocks>50dyma numbers: Nyse 76% (from 77%), Nasdaq 63% (from 64%), R2000 69% (from 71%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was sharply higher at 8.02. I only have two readings higher than this in the database, both in March with the highest ratio being 8.39 on 03/13. This is a concern even though Total Assets I follow are still 20% lower than at the March high. VIX closed at 10.99, close to Friday’s 10.73 which was the lowest close since Feb 2007
Dollar Index and Bonds (TLT) have held LT strong price location which is a LT concern for equities, see below.
Financial Sector XLF: printing above 22.04, its Major 1/2R level.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location.
Bonds TLT: lower last week but on 05/29 chart printed its highest level since June last year and remains in a strong price location although Momentum just turned negative.
Dollar Index: Holds a strong price location above 79.76, the maj poc but Momentum just turned negative.
Gold GLD: Last Tuesday printed its lowest level since January.
Oil USO: is now printing above 37.96 in a strong price location.
EURUSD: looks to have formed a lower high at 1.3673, the 12mn poc, which is a weak pattern.
