Pre-open Monday 20th July
Sentiment (Rydex) hit an 8month low on Tuesday just as ES recovered back above 2095.00, the important 10mn poc. All subsequent Value Areas were printed above this level which is encouraging and Aggressive Buying (green-at-top) was marked twice last week. ES needs to hold 2095.00 to maintain a strong price location.
Breadth and Price Momentum improved but are not yet supportive. Breadth numbers back above 50 and PriceOsc above zero for the four stock index TFs would be further positives.
First Level Support = 2095.00 (10mn poc)
Second Level Support = 2080.25 (1/2R off May high)
Stocks>50dyma numbers: Nyse 42%, Nasdaq 49%, UK 56% . Numbers >50 are supportive.
CP Market Charts: Nyse stayed negative, Nasdaq turned Neutral, U.K. stayed Negative.
Sentiment: My version of the Rydex Assets Ratio ended the week at 10.22 having fallen to 8.67 on Tuesday which was an eight month low
Supporting Charts:
Bonds TLT: closed above 117.14, the maj poc. Futures point to a lower open for TLT today.
Dollar Index: is today printing above 96.76, the 1/2R off March high in a strong price location.
Gold GLD: closed the week below the March low to print its lowest level since April 2010.
Oil USO: the 16mn poc recently migrated to 20.24. USO closed below that level for seven consecutive days eariler this month and then fell heavily. The 1/2R off the March low is at 18.55 and this is now Resistance. Closed on Fridday at its lowest level since March.
EURUSD: is today printing below 1.1340, the 12mn poc, and below 1.0961, the 1/2R off March low, in a weak price location.
