posted 9.07 a.m. est
Pre-open comment Wednesday 8th June
Monday’s red-at-bottom low was tested on Tuesday and Aggressive Selling (red-at-bottom) was marked again. I thought that Responsive Buyers might appear around 1280 and although ES has stalled here there has been no Significant Buying activity marked. LT indicators are negative as discussed but in the ST, Market is technically oversold (SPY 14dyRSI at its lowest since July 2010 price low) and ST Sentiment (see below) is also looking oversold. Long Trades eliminated for me since Close 06/01.
1st Level Resistance = 1291.50 (minor poc)
2nd Level Resistance = 1314.50 (15dy poc)
ST Sentiment: My version of the Rydex Assets Ratio was down to 2.74 which is a 48day low and 40% down from the extreme for this indicator recorded in early May. Bull fund assets that I follow were down a further 8% to the lowest level since mid-November. Note this is a contrarian indicator.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: 22day high on Tuesday. Daily momentum (PriceOsc) is up. Longframe, chart made low in May on major 1/2R support (from 2008 high).
+ Dollar Index: 22day low on Monday. Daily momentum (PriceOsc) is down. Chart prints back below 74.53, the 1/2R off May low – weak position.
? TLT: Daily trend is up but Daily momentum (PriceOsc) is down.
imo these charts have a positive ST bias for equities.
