pre-open comment Wednesday 2nd May
ES spiked as high as 1411.75 early in Tuesday’s session, came weaker to the close and overnight and pre-open prints back in the price area around 1395, the 2month poc. Please read yesterday’s comments (highlighted on graphic).
Re the 1/2R levels off March high. Pre-open IWN and QQQ print back below those levels; the Large Cap SPY and DIA are printing above their levels. A more reliable indication of market direction will be seen if these line up, above or below.
Potential Support/Resistance = 1395 (2month poc)
First Level Support = 1386 1/2R off March high
Second Level Support = 1366 (4month poc)
Sentiment: My version of the Rydex Assets Ratio was up again on Tuesday to 4.98 (from 4.75). The Rydex traders are looking bullish and this is often an early warning. Just to remind you, the highest ratio in my database was on 3rd April at 5.64.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Chart currently holding above the four month poc Support at 1.3069 but printed a 7dy low today.
? Dollar Index: sharply higher today, printing back above 79.09 (12mnth poc) at a 6dy high.
? TLT: pre-open is printing almost exactly at the maj poc at 117.18.
imo these charts do not currently imply an obvious bias for equities.
