posted 9.10 a.m. est
Pre-open Wednesday 5th May
Early in Tuesday’s session ES consolidated below the 1183.50 poc and then fell quickly towards the next level of support at 1161.50 (see Monday’s pre-open comment). Pre-open today ES has edged down closer to that level reaching a low of 1162.50 as I write. If the support at 1161.50 fails to hold and ES prints time below that level then it would suggest another leg down to the chart support in the low 1140’s (the January highs). Should that occur we will likely see the Longframe Market Timing System confirming this Dayframe weakness by the end of the week.
ST sentiment: My version of the Rydex Assets Ratio was down from 2.9 to 2.6.
Bull fund assets I follow fell by 7% and Bear fund assets were up only 3%. The ISEE (equity only) index came in at 187 leaving the 10dyma at 196. This is not panic – more like complacency and therefore suggest there’s more downside to come (contrarian).
Supporting Charts (technicals based on daily Price Oscillator)
+ USDJPY: prints above the 93.60 1/2 level but negative divergence.
– EURUSD: new 12month low today; momentum and trend down.
– UDX: new multi-month high, momentum and trend up.
– TLT: broke above 91.25 poc; momentum and trend up.
In the main these charts are bearish for equities
