posted 9.26 a.m. est
Pre-open Wednesday 12th May
Re: %Stocks>50dyma. Russell2000 index shows more than 50% stocks > 50dyma. Others indices, e.g. nyse, nasdaq, sp500, show numbers less than 50%. As I mentioned in the webcast yesterday these are useful numbers when market is up for a few days but the Market Timing Charts (weekly) are negative. At the moment the numbers aren’t quite high enough to call bullish.
Other ST negatives are the fact that the last imbalance was red (Significant Selling) and ES is still having a problem overcoming the resistance at 1161.50. If ES can print above that level it would put the chart in a stronger location but longs would still be specualtive.
Dayframe: I favour shorts but would prefer to see weaker price location. e.g. back below 1136 the 1/2R off the April high (dotted).
Sellers in control since close 27th April. I cannot consider the long side until Significant Buying is marked.
ST entiment: My version of the Rydex Assets Ratio was down from 1.74 to 1.7. That’s a two month low.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: prints below the 93.60 1/2 level
– EURUSD: still in a weak position; Price Osc down for 14 days
– UDX: still in a strong position; Price Osc up for 14 days. Daily chart resistance at 85.14
– TLT & IEF: remain above major levels;
in the main these charts are bearish for equities
