posted 9.20 a.m. est
Pre-open comment Wedesday 18th May
I suggested Buyers might Respond (green-at-bottom) if 1317 printed and that did occur yesterday but Tuesday’s Value Area printed entirely below the 1327 poc so this is not Effective Buying. 1317 is a previous poc and just below the VAL on various timeframes out to 40days.
Overnight ES has printed back to Monday’s high at 1332 but I would need to see a VA printed above 1327 and an improvement in the %Stocks>50ma numbers before considering the long side.
Other important chart levels to watch today are: SPY 133.15, IWM 82.36.
Major S/R = 1327 (6month poc)
Support = 1317 (prev poc)
ST Sentiment: My version of the Rydex Assets Ratio was up at 3.85 (from 3.6). Earlier in the month the ratio reached 4.57 which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: 30day low on Monday. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 28day high on Monday. Daily momentum is up.
– TLT: New 5month high today.
these charts currently have a negative bias for equities.
