posted 4.54 a.m. et
pre-open comment Wednesday 13th June
Please note this was written before 5 a.m. Also note I will continue using the June contract until end of this week.
On Tuesday, Monday’s low was tested but Support was found in the area of the major poc at 1307 as Buyers Responded (green-at-bottom) early in the session. For the fourth consecutive day the Value Area was generated entirely above that level which is often a positive in the ST. Looking at the chart you can see the obvious Support at 1307. If ES does not push higher pretty quickly but instead breaks that Support I would expect weakness to follow especially if Selling is marked below that level. Bulls would hope for a breakout above this consolidation based on 1307 and you can see the struggle for dayframe control in the alternating green and red over the last five sessions.
First Level Resistance = 1341 (1/2R off March high – June contract)
First Level Support = 1314.50 (50dy poc)
Major Support = 1307 (poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 3.55 which is a fifteen day high. Last week the ratio reached 2.25 which was a four month low.
Supporting Charts (+ or – or ? for equities). UNCHANGED VIEW
(Momentum = daily PriceOsc)
? EURUSD: Chart printing below the Major poc at 1.2777 but momentum has turned up.
? Dollar Index: Prints well above the important level at 80.15 but momentum has turned down.
? TLT: w/e 1st June the chart printed a new high but momentum has turned down.
daily technicals suggest the possibility of a turn here – therefore imo, in the ST, there is no obvious bias for equities
