posted 9.28 a.m. est
Pre-open comment Wednesday 25th May
I marked Responsive Selling on Tuesday (red-at-top) but VA was overlapping/higher so Ineffective. Overnight ES has probed down to 1302.25 which is almost down at the 50day VAL mentioned yesterday = 1302 (same level today) – if the major trend of the market is still up Buyers would be expected to Respond to a test of this level should it occur this week.
Note that time spent between 1308 and 1318 may cause important poc level at 1327 to migrate lower. This would most likely be bearish. Long Trades eliminated for me until Significant Buyers are marked again.
Resistance = 1327 (6month poc
ST Sentiment: My version of the Rydex Assets Ratio was up to 3.65 (from 3.32). The ratio reached 4.57 earlier this month which is the highest I have in my database.
Supporting Charts (+ or – or ? for equities).
– EURUSD: 45day low on Monday. Daily momentum (PriceOsc) is down. Support at the 1.3923 poc (12month).
– Dollar Index: 35day high on Monday. Daily momentum is up.
– TLT: 5month high last week. Chart corrected but found support at the level of the December and March highs and appears to be channelling up off the April low.
imo these charts have a negative bias for equities.
