pre-open comment Wednesday 30th May
In the ST, direction is not easy to judge. ES has printed three consecutive Value Areas above the major poc at 1307 which is encouraging but Significant Buyers have not been marked for five days. However, I have not marked Significant Sellers either and if this is “Sellers Resting” (see yesterday’s highlighted comments) then I would expect them to make an appearance soon. Supporting charts are really not helpful for equities(see below).
Dayframe: ST Bullish If ES holds above 1307 and Effective Buying is marked. ST Bearish if ES prints below Monday’s low at 1317.50 – the weekly bar would start to look like a reversal bar. ST direction should resolve with the next Buying or selling imbalance.
First Level S/R = 1323 (30dy poc)
Second Level Support = 1307 (maj poc)
Sentiment: My version of the Rydex Assets Ratio was up slightly at 3.23. Friday’s ratio at 2.98 was a four month low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Major poc is at 1.2777. Chart currently prints below that level and today printed its lowest level since July 2010.
– Dollar Index: today printed its highest level since September 2010.
– TLT: today printed its highest level since October.
imo these charts have a negative bias for equities.
