Pre-open Friday 7th August
Wednesday’s high came in at the 2107.00 Resistance (poc) and ES has declined from there. Thusday generated a lower, wider Value Area and the 1/2R Support at 2080.25 was broken. This is weaker price location. Breadth numbers also need to improve.
Second Level Resistance = 2107.00 (poc)
First Level Resistance = 2095.00 (poc)
Breadth numbers are not yet supportive.
Stocks>50dyma numbers: Nyse 36% (from 38%), Nasdaq 34% (from 38%), R2000 35% (from 38%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged at 10.0. On 07/14 the ratio reached 8.67 which was an eight month low.
Supporting Charts:
Bonds TLT: On Monday reached its highest level since April. Momentum (PriceOsc) is still 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: closed on Thursday close to the July low which was the lowest level since early 2010.
Oil USO: reached a new low on Thursday
EURUSD: is today printing below 1.0961, the 1/2R off March low in a weak price location. Price relative to this level would indicate ST strength/weakness.
