posted 08.50 a.m. est
Pre-open comment Wednesday 14th May
Strictly applying my rules I had to mark Reactive Selling (red-at-top) on Tuesday but this was from a new high and only Significant Selling marked below 1872 would be a sign of weakness in the longer timeframe. Breadth numbers deteriorated yesterday and are still not supportive for Nasdaq or R2000, see below. Bulls would want to see Key Equity ETF chart, IWM, back above 111.48 (12mn poc).
First Level Support = 1872.00 (4mn poc)
Major Support = ES 1835.50 (maj poc)
Index ETFs: Pre-open, SPY is printing above 187.73, the 7mn poc, IWM is printing below 111.48 (12mn poc), QQQ is printing above 86.32, the 8mn poc and DIA is printing above 163.40 (2yr poc). Momentum (PriceOsc) turned lower for all four on Tuesday.
Stocks>50dyma numbers: Nyse 57% (from 60%), Nasdaq 29% (from 32%), R2000 36% (from 42%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 6.44. On 04/17 the ratio fell as low as 4.83, a 72day low.
Supporting Charts (+ or – shown as implied bias for equities)
+ KEY Chart Financial Sector XLF: closed above its maj 1/2R level (22.04).
– KEY Chart EURJPY: chart is printing below 140.96, the 1/2R off Dec high.
– KEY Chart Bonds TLT: strong price location above 2year poc Support at 107.24.
Dollar Index: rallied strongly back above the maj poc at 79.76, having tested last year’s low (78.92). Printed a 24dy high on Tuesday.
Gold GLD: still printing below 127.20, its 18mn poc in a LT weak price location.
Oil USO: printing below 37.31, the 1/2R off 2011 high but has rallied off the 36.11 Support (1/2R off 2013 high).
EURUSD: Last week the chart printed its highest level since November 2011. This test above the March high was rejected though and the chart has sold off from there with Support a little lower at 1.3673 (12mn poc).
