pre-open comment Wednesday 15th May
Like Monday, Tuesday generated a higher, wider Vaue Area. Aggressive Buying (green-at-top) was marked.
%Stocks>50dyma numbers: Nyse 77% Nasdaq 67% R2000 72%. Numbers >50 are considered supportive.
First Level Support = ES 1626 (21dy poc)
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 4.77 (from 4.83). This on a day when the market hit a new high. Rydex traders remain sceptical and from a contrarian viewpoint that’s usually supportive. Ratio reached a low of 3.22 on 4th Jan and a high of 5.22 on 13th Feb.
Supporting Charts + or – or ? indicates bias for equities
+ Bonds TLT: Turned down from 123.42, the 1/2R off last July’s high and closed on Tuesday below the major poc at 117.15. Momentum is down and negative.
– Oil USO: from the April low rallied back to the Resistance around 34.20. Only Closed once above it so far but time printed above this level would put the chart back into a strong price location. Momentum, although positive has turned down.
? Gold GLD: Fell steeply last month to its lowest level for two years. Momentum, although positive has turned down.
– Silver SLV: Has been weak since it double-failed at its maj poc in January and last month printed its lowest level since October 2010. Momentum, although positive has turned down.
– Dollar Index: Has today reached its highest price level since July last year.
– EURUSD: Printing back below 1.3070, the 24mn poc. Support at 1.2777, the major poc.
Bonds look positive for equities. Dollar looks negative for equities. Mixed for now.
