Monday’s red-at-bottom low was very briefly tested on Tueday. AS I wrote yesterday, there is potential Support around 2045.00 but as a “previous” poc we can’t be sure how valid it is. In any case I need to see Significant Buying marked 2095.00, which is the 10mn poc, before considering new longs. Bulls would want to see breadth numbers improving, see below.
Second Level Resistance = 2107.00
First Level Resistance = 2095.00
Possible Support at 2045.00 (prev poc)
Stock Index ETFs: Momentum is negative and down for SPY, DIA, QQQ and positive but down for IWM. Also see current price relative to poc levels in Monday’s eBook. SPY, QQQ, and DIA closed weak below there local pocs. Key chart could be IWM which closed very close to 124.50, its 7mn poc, but has so far held that level.
Stocks>50dyma numbers: Nyse 29.3% (from 27%), Nasdaq 46% (from 43%), R2000 46% (from 43%). Numbers >50 are supportive.
Sentiment:My version of the Rydex Assets Ratio was slightly lower at 10.80. Note that seven days ago the ratio fell to 8.78 which was a seven month low.
Supporting Charts:
Bonds TLT: closed on Monday close to 117.14, the maj poc. Price below this level is weak location. Futures indicate that TLT will open lower today.
Dollar Index: found Support earlier in the week at 94.67, the 12mn poc and is higher today.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected. Price above this level would be first sign of LT strength. GLD remains in a weak location.
Oil USO: the 16mn poc recently migrated to 20.24. USO closed below that level on Tuesday.
EURUSD: is today printing below 1.1340, the 12mn poc
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