Pre-open Monday 6th July
Last week started badly with Aggressive Selling marked on Monday and an unconvincing performance for the rest of the week with all price action taking place below the 2095.00, the 10mn poc. I need to see Significant Buying marked above 2095.00 before considering new longs. Overnight ES has printed as low as 2034.25 but rallied from there and one hour pre-open prints back above 2045.00, the former poc which “may” still be significant.
Second Level Resistance = 2107.00
First Level Resistance = 2095.00
Possible S/R at 2045.00 (prev poc)
All four major Stock Index ETFs closed in weak price location. Bulls would also want to see Breadth numbers improve.
CP Market Charts: all major Market Charts are negative.
Stocks>50dyma numbers: Nyse 31%, Nasdaq 43%, R2000 43%, UK 36%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 9.9. Two weeks ago the ratio fell to 8.78 which was a seven month low.
Supporting Charts:
Bonds TLT: closed below 117.14, the maj poc in a weak price location. Futures indicate that TLT will open higher today.
Dollar Index: found Support earlier last week at 94.67, the 12mn poc and is printing a 21day high today.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected. GLD remains in a weak location.
Oil USO: the 16mn poc recently migrated to 20.24. USO closed below that level at its lowest level since mid-April.
EURUSD: is today printing below 1.1340, the 12mn poc
