Short Term Trading Week Starting: 13 May, page-148

Pre- Market Update

Well we have almost made it thought another week. Yesterday SPX closed at 2850.96 after ES dropped just before the cash session to the 2820 level and overnight things are still sticking with weekly support.   There are no big changes to weekly support/resistance early this AM but traders don’t seem overly confident for reasons obvious.

US Treasury futures are slightly higher after they got a large bump last night on weak Chinese data and the cash session saw that gain maintained, even as equities got a major thrust higher on the initial balance and in the 10:00 ET trading hour.  That was helped by weaker than expected US retail data.  When the market got some hints from the Treasury Secretary that meetings were ongoing,  the short overnight positions got blown up on the rapid cash equity advance to the 2850 area.  The news that there may be a delay in auto tariffs also helped the situation. The Yen pairs, having lost substantially on Wednesday morning's drop to the ES 2820 area, are now settled and flat.

NYSE A-D lines and NYSE breadth started below the neutral line but ended at +988 and +1.41:1 and NASD breadth: +2.03:1.

Currently the ES profile is quite balanced but shows that traders are mostly short with a bit over four hours to go until the US cash session.  Just before the bell we will see Housing Starts and Building Permits for April.

I see that polling has tightened today...