posted 07.10 a.m. est
pre-open comment Wednesday 19th June
On Tuesday ES opened just below its S/R at 1635.50 and immediately rallied. The entire Value Area was generated above that level which is improved price location, see yesterday’s highlighted comments. Sign of strength would be Significant Buying being marked above that level. I have dotted in the VAH 1657 and VAL 1622 which covers the higher price range since early May.
ETF 1/2R levels: SPY 164.66; IWM 98.05; QQQ 73.21; DIA 151.72. All closed above these levels which is improved price location. Momentum, although negative, has turned up on these charts.
%Stocks>50dyma numbers: Nyse 62%, Nasdaq 69%, R2000 71%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Support = 1635.50 (1/2R) – 1636.00 (25dy poc)
Second Level Support = ES 1628 (60dy poc)
Sentiment: my version of the Rydex Assets Ratio was almost unchanged at 4.29. Last Thursday’s ratio at 4.00 was a 32 day low and showed (at last) some bears emerging. Watching the ratio relative to its recent high which was 5.43 on 22nd May (May’s high day) and its recent low which was 3.27 on 25th April.
Supporting Charts
Bonds TLT: In a weak price location below 117.15, the major poc. Last week chart printed its lowest level since April 2012.
Oil USO: Chart now prints above the 34.20 Resistance area. Momentum is up and positive.
Gold GLD: Fell steeply in April to its lowest level for two years. That level was approached again in May and looks as though it could be tested this week.
Silver SLV: Last week chart printed its lowest level since Oct 2010 and that level looks as though it could be tested this week.
Dollar Index: Broke the Support at the 1/2R off 2009 high at 81.10. Next Support is the major poc at 80.15. Momentum is negative and down.
EURUSD: On Tuesday printed its highest level since February and above 1.3228, the 1/2R off Feb high. Momentum is up and positive.
