posted 7.25a.m. est
from pre-open comment Thursday 21st May
>>Longframe:
The early May time pivot where I anticipated a turn for the market is still looking like a good call – so far. My best guess at the moment though is that we’ll see that high tested with an accompanying surge of bullish sentiment – this idea would be negated if we see Effective Selling below ES 872.<<
from pre-open comment Friday 22nd May
>>..a rule I’ve mentioned before is: “never fade the last imbalance” and the last imbalance was selling (red).<<
Pre-open Tuesday 26th May
Last week I marked two instances of Significant Selling and one of Significant Buying. That’s a Selling imbalance. And, we had a Selling imbalance the previous week; the first since week-ending 6th March.
Also worth noting that the 10dayma of NYSE declining volume has been greater than the 10dayma of NYSE advancing volume for the last five days.
Bears would be looking for Effective Selling below 872 and the CP Breadth System to turn negative. That would confirm Sellers in control and most lilely the end of the rally.
Dayframe:
More than a week ago I suggested that .. >>890 may well be an attractive level (time spent) for ES<<
At the end of last week ES spent a lot of time (relatively) printing 890. It becomes our First Level S/R.
I am not interested in the long side until there’s a higher low or consolidation ABOVE 890 and until we see Significant Buying marked (green).
Pre-open ES prints just above the Major level at 872. IF this does prove support (again) a fast move up is still a good possibilty – the 91 day cycle from low terminates on the 5th June. The 91 day cycle – low to high is very common in the stock market and may play out again here.
