Pre-open Wednesday 9th June
Lower, wider Value Area on increased volume on Tuesday but a decent bounce in the pm. closing near the high of the day.
Longframe: CP Mkt Timing system negative. Last marked imbalance was Selling (red). Sellers still in control. Longs eliminated for me on any timeframe.
Dayframe:
First Level Resistance today is the 1082 poc.
First Level Support is at 1055. If ES prints time below this level then a test of the May low would be very likely. If it holds then it will be interesting to see where time is subsequently spent.
ST Sentiment: My version of the Rydex Assets Ratio was down to 1.0, the lowest level since July 2009. This would suggest a degree of pessimism usually seen at (or close to) a price low of some degree. Bear Fund Assets that I follow increased by 26%.
ISEE (equity only) Index came in at 189 which was a six day high and the ISEE (all securities) Index registered 120 which is a 25 day high – this doesn’t confirm the capitulation seen in the Rydex data.
Supporting Charts (technicals based on daily Price Oscillator)
? USDJPY: prints above the poc which migrated up slightly to 90.21.
– EURUSD: new four year low on Monday and prints below major support but Price Osc is positively diverging with price.
? UDX: needs to hold above 87.84 to remain bearish for equities short term. Price Osc is negatively diverging with price.
– TLT is higher off support last week at the 95.22 poc.
imo these charts remain bearish for equities.
