Pre-open Tuesday 7th July
Monday generated the fifth consecutive Value Area below 2095.00, the 10mn poc, but above 2045.00, the former poc which “may” still be significant as Support. ES is printing a little higher pre-open today. I need to see Significant Buying marked above 2095.00 before considering new longs.
First Level Resistance = 2095.00
Possible Support at 2045.00 (prev poc)
All four major Stock Index ETFs closed in weak price location with Momentum (PriceOsc) negative and heading down. Bulls would also want to see Breadth numbers improve.
CP Market Charts: all major Market Charts are negative.
Stocks>50dyma numbers: Nyse 29% (from 31%), Nasdaq 42% (from 43%), R2000 43% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 9.8. Two weeks ago the ratio fell to 8.78 which was a seven month low.
Supporting Charts:
Bonds TLT: closed above 117.14, the maj poc in a stronger 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 25day 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 for seven consecutive days and on Monday fell heavily.
EURUSD: is today printing below 1.1340, the 12mn poc at a 25dy low.
