posted 4.55 a.m. est
Pre-open Wednesday 26th May
Buyers responded again on Tuesday (grren-at-bottom) but this was not Effective Buying (the Value Area was lower and wider on increased volume).
As I emphasised in yesterday’s webcast ES below 1094 is weak price location and with the CP Market Timing System still negative caution is advised. I will wait until Effective Buying is marked above 1094 before considering longs on any timeframe.
ST sentiment: My version of the Rydex Assets Ratio was unchanged at 1.3 which was a little surprising; the ratio is low but I was expecting an even greater degree of capitulation to show in this number. (Monday’s ratio of 1.1 was the lowest level since July 2009.)
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: Price Osc dn for 11 days.
– EURUSD: Trend still down and close to the low set last week.
– UDX: currently printing above the daily chart resistance at 85.14
– TLT & IEF both strongly higher recently
these charts are not supportive of equities.
