pre-open comment Wednesday 9th May
One of the real concerns is the lack of major Support for ES around current levels. The next significant poc Support on the Daily Chart is down at 1313. ES is currently printing below the 1366 poc which is weak price location. There may be further weakness without that poc migrating lower but as I wrote in Monday’s eBook the longer ES prints below 1366 the higher the chance is that will happen – and that would mean the current VAL at 1353 would fall as well.
First Level Resistance = 1366 (4month poc)
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 3.61 (from 3.65). Bear fund assets that I follow were up only 2%. I reported yesterday that Bull fund assets were down but Rydex Traders have not yet rushed into Bear Funds. No panic yet imo.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: broke below 1.3069, the four month poc Support on Monday and today has printed its lowest level since January.
? Dollar Index: is today probing up into the major Resistance at 80.15.
– TLT: is today printing at a 3month high.
imo these charts have a negative bias for equities.
