Pre-open comment Wednesday 15th June
Note: now following the September contract.
ES spent most time on Tuesday printing at the 1282.50 minor poc. September contract needs to print time above this level to confirm ST strength. 1281 is the overnight high. Note that the equivalent level on SPY is 129.67 poc and that level proved a problem yesterday – SPY printing 128.27 pre-open.
If ES is going to work higher here in the ST then First Level Support at 1268 should hold or at least reject a test. Time spent back below that level would suggest more weakness. Dollar showing ST strength (see below) and with the ES LT analysis negative, caution still advised.
First Level Resistance = 1282.50 (15dy poc) (129.67 SPY)
First Level Support = 1268 (minor poc Sep)
ST Sentiment: My version of the Rydex Assets Ratio was slightly higher at 2.41. Yesterday’s ratio at 2.25 was a 58day low.
Supporting Charts (+ or – or ? for equities).
– EURUSD: On the daily chart there is a minor lower high at the 1/2R off May high (1.4455). Printed a 12day low today and Momentum (PriceOsc) is down.
– Dollar Index: 13day high today and back above the minor 1/2R off May high at 74.53. Momentum (PriceOsc) is up.
+ TLT: Printing below the important levels discussed in yesterday’s webcast and Momentum (PriceOsc) is down.
imo these charts are mixed and it is difficult to determine a ST bias for equities.
