Pre-open Wednesday 19th May
I marked Significant Selling twice on Tuesday. I now have Red (negative) as the most recent mark on both weekly and daily timeframes. Long side is eliminated for me until I mark Effective Buying. Major support at 1094 is likely to be tested at some point. I have Sellers in control since close on 27th April.
First Level Resistance at 1136
Major Support at 1094
ST entiment: My version of the Rydex Assets Ratio was down slightly from 1.94 to 1.88. The market is down more than 4% over the last four days and this ratio hasn’t moved. If the market goes lower here I’d like to see a little panic/capitulation from the Rydex timers before trying to call a low of any degree (contrarian).
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: down from the 93.60 1/2R resistance. Daily Momentum is down.
– EURUSD: a new 4 year low today; Daily Momentum down for 19 days
– UDX: a new 12 month high today, currently printing above the daily chart resistance at 85.14; Price Osc up for 19 days.
– TLT & IEF: remain above major levels;
these charts are not supportive of equities
