On Monday the emini Support at 2087 was broken.
This is the first Significant emini Selling since 05/17 and it comes after ES reached the distribution extreme around 2120 last week. I marked Aggressive Selling (red-at-bottom). This was below 2087, the maj poc, but the Value Area wasn’t generated entirely below that level. Time printed below 2087 would suggest that the poc of that distribution at 2041 is likely to be tested. In any case price below 2087 is weak price location.
First Level Resistance = 2087.00 (maj poc)
Second Level Support = 2041.00 (poc)
Stocks>50dyma numbers: Nyse 53% (from 61%), Nasdaq 51% (from 58%), R2000 58% (from 65%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged at 4.56. On 04/26 the ratio reached 5.27 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: On Monday TLT closed at its highest level since early 2015 and futures are higher today.
Dollar Index: printing back above 93.95, the 1/2R off the May low in a stronger price location. Resistance is at 95.25, the 2yr poc.
Gold: GLD – earlier in the month the chart held 115.50 which was previously the major poc and is now printing above 118.22, the maj poc, in a strong price location.
Oil: Last Wednesday USO printed its highest level since November but sold-off sharply from there.
EURUSD: printing below 1.1313, the 4yr poc, in a weaker price location.
There is Support just below 1.11 which is the 1/2R off last year’s low. Price below that level would suggest further weakness.
click graphic to enlarge
