pre-open comment Wedesday 23rd May
ES is currently oscillating around the major poc at 1307 (prints 1307 as I write pre-open). We need to look for a clear higher low above or lower high below that level as clue re ST direction. As I said yesterday “I’m not convinced that we’ve seen the sort of capitulation in the sentiment numbers that would normally occur at a bottom following a sell-off like this” and it may be that a test of the recent low is needed before we see that happen. In any event, price below 1307 is weak price location. Please see previous highlighted comments.
Potential Support / Resistance = 1307 (maj poc)
Sentiment: My version of the Rydex Assets Ratio was slightly higher on Tuesday to 3.49 (from 3.3). Ratio reached a low of 3.07 on 03/13.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Major poc is at 1.2777. Chart currently prints below that level. Last week printed its lowest level since January.
– Dollar Index: last week printed its highest level since January. Chart well above the important level at 80.15 and looks as though it wants to test that January high.
– TLT: last week chart printed its highest level since October. Chart very overbought technically.
imo these charts have a negative bias for equities.
