Pre-open Friday 31st July
Last update on 23rd July I wrote that “Time spent at 2107.00 and 2095.00 is very close so both levels are important to monitor”. This is still very much the case. Being precise, the 10mn poc is back at 2095 with the time spent at that level during the decline earlier this week. Aggressive Selling (red-at-bottom) was marked twice at the end of last week but ES recovered this week with Aggressive Selling (green-at-top) being marked on Tuesday and Wednesday. Overnight ES reached the 2107.00 Resistance and that is the exact high so far. Price printing time above that level would be a big positive.
Resistance = 2107.00 (poc)
First Level Support = 2095.00 (poc)
Second Level Support = 2080.25 (1/2R off May high )
Stock Index ETFs: Momentum (PriceOsc) for all four major ETFS has turned back down.
Breadth numbers are not yet supportive.
Stocks>50dyma numbers: Nyse 36%), Nasdaq 38%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 9.94. On 07/14 the ratio reached 8.67 which was an eight month low
Supporting Charts:
Bonds TLT: printing above 117.14, the maj poc. Momentum is positive and up.
Dollar Index: as long as chart holds above 96.76, the 1/2R off March high, it is in a strong price location.
Gold GLD: last week printed its lowest level since early 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. This week has printed very close to the March low.
EURUSD: is today printing above 1.0961, the 1/2R off March low which is a stronger ST price location if it holds. In the LT there is Resistance at 1.1340 (12mn poc)
