posted Sunday 29th May 14.27 p.m. est
Pre-open comment Tuesday 31st May
Last week I marked two instances of Significant Buying and one of Significant Selling. Friday closed above Mon-Wed range high. This is active Buyers but certainly not Effective on the weekly timframe – the Value Area for the week was lower than the previous week.
Price tested the 50day VAL last week and Buyers were interested – this is encouraging for Bulls. The next band of Resistance and test for the Bulls is between the 35day poc at 1336 and 1338, the 1/2R off the May high.
The 6month poc at 1327 could potentially be either Support or Resistance this week.
Breadth is not supportive. The Chartprofit Market Timing System remained negative for the Nyse and Nasdaq Market Charts. Russell2000 Market Chart turned neutral.
%Stocks>50ma numbers for both Nyse and Nasdaq are below 50.
Sentiment: from last week’s eBook >> the following Market Sentiment numbers suggest that the Bears are emerging fast and downside is probably limited at this time.<< More Bears emerged last week. The polls and options ratios hit extremes endorsing last week’s comment.
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 3.35. The extreme high reading of this indicator was 4.57 recorded earlier this month.
And on Wednesday 05/25 the ISEE (equity-only) Index,_10dayma reached its lowest level since August 2010.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Daily momentum (PriceOsc) turned up last week as Chart found support at key level.
+ Dollar Index: Daily momentum (PriceOsc) turned down and last week looks like a reversal bar.
? TLT: Chart is holding the Support trendline off the April low but is findning Resistance at poc with Daily momentum down.
imo these charts are mixed but most likely have a positive ST bias for equities.
