Pre-open comment Wednesday 27th May
See yesterday’s highlighted comments. Both levels we are monitoring came into play on Tuesday. ES opened just above the minor poc at 2117.50 and immediately sold off. Later in the day Support was found at the 10mn Time Support at 2095.50. Price below this level would put ES in a weak price location and Significant Selling marked below here would indicate further weakness. Bulls would want to any test of 2095.50 quickly rejected.
Minor First Level Resistance = 2117.50 (16dy poc)
Major Support = 2095.50 (10mn poc)
Stocks>50dyma numbers: Nyse 41% (from 53%), Nasdaq 41% (from 48%), R2000 36% (from 44%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 11.46. The highest ratio in the database was at 14.06 on 03/02
Supporting Charts:
Bonds TLT: last week printed its lowest level since November and probed the 12mn Support 119.26. Further Support at 117.14, maj poc.
Dollar Index: printing back above 94.67, the 12mn poc which is strong price location and currently printing above 96.76, the 1/2R off March high.
Gold GLD: last week a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected and on Tuesday broke below 115.12, the 12mn poc indicating further weakness.
Oil USO: earlier this month printed its highest level since December and since early April has been printing above 18.39, the 12mn poc, in a stronger price location.
EURUSD: currently printing back below the major 1/2R (1.1241) in a weak price location
