Pre-open Wednesday 4th May
See previous, highlighted, comments. Overnight ES has declined again to test the Support at 2041.00. As of one hour pre-open the low is 2040.75. Price printing time below this level would indicate further weakness.
First Level Resistance = 2086.00 (min poc)
First Level Support = 2041.00 (2mn poc)
Stocks>50dyma numbers: Nyse 73% (from 78%), Nasdaq 56% (from 67%), R2000 70% (from 75%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.11. Last Tuesday’s ratio at 5.27 was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: TLT moved sharply lower mid April but is now rallying back. The 7mn poc migrated to 128.47 and is now Support with major Support at 126.70, the 1/2R off last year’s high.
Dollar Index: on Tuesday printed its lowest level since Jan 2015.
Gold: GLD – on Monday printed its highest level since Jan 2015.
Oil: USO earlier in the month found Support at 9.00, the 6mn poc and rallied strongly from there. On Friday Oil printed its highest level since November but is off that level.
EURUSD: in mid-April chart made a higher low just above 1.1198 (3yr poc) – a strong pattern. On Tuesday printed its highest level since August.
