Pre-open Friday 11th September
On Wednesday, ES opened above the 1978.50 1/2R Resistance but price was rejecetd above this level. The minor Support at 1933.00 held (see chart) but time printed below this level would be weaker price location and Significant Selling marked below that level would indicate further weakness.
Major Resistance = 1978.50 (1/2R off this year’s high)
minor Resistance = 1973.00 dashed (minor VAH)
Major Support = 1870.00 (formerly the maj poc)
minor Support = 1933.00 (min poc)
ETFs: Important Resistance levels to watch this week (see eBook) = SPY 198.10; IWM 116.00; DIA 166.95. Price above these levels would be much stronger location.
Stocks>50dyma numbers: Nyse 17% (from 16%), Nasdaq 27% (from 25%), R2000 24% (from 22%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.28. Wednesday’s ratio at 4.13 is the lowest ratio since October 2013. This is a contrarian indicator.
Supporting Charts:
Bonds TLT: found Resistance 08/24 at 126.69 (1/2R off this year’s high) and sold off. Momentum (PriceOsc) is negative and down. Printed a 33day low on Wednesday.
Dollar Index: printing above 94.67, the 12mn poc. Price below this level is weak price location. There is Resistance at 96.50 (1/2R off this year’s high) and for 10days the chart has been consolidating just below that level which can be a weak pattern. Price above 96.50 would be stronger location.
Gold GLD: chart rallied into mid August but has retraced from there. Price is now printing below 107.78, the 1/2R off July low, which is weak price location. Momentum has turned negative.
Oil USO: printed a new low on 08/24 and then rallied very strongly from there to its highest level since late July. Momentum is positive and up.
EURUSD: recently moved to a weaker LT price location below 1.1340 (12mn poc) which is now Resistance. The minor 1/2R off March low at 1.1083 provided Support last week but price below that level would suggest further weakness.
