pre-open comment Friday 5th July
>>ETF Resistance: SPY 162.40; DIA 150.14; QQQ 72.05; IWM 97.87
ETF Support: SPY 155.80; DIA 144.24; QQQ 68.62; IWM 93.62.<<
The Support levels (above) that we have been monitoring held last week (SPY and IWM exactly) and pre-open today all four ETFs are printing above their Resistance levels. If these levels hold and time is printed above the 1/2R then these charts are in a much stronger price location which would be a positive.
In Wednesday’s (short) session I marked Responsive Buying (green-at-bottom). Pre-open ES is printing above the 1/2R at 1616.75 so this becomes First Level Support.
1st Level Support = ES 1616.75 (1/2R off May high)
2nd Level Support = ES 1607.50 (min 25day poc)
%Stocks>50dyma numbers: Nyse 44%, Nasdaq 62%, R2000 62%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
Sentiment: My version of the Rydex Assets Ratio was slightly lower on Wednesday at 2.79. Last week the ratio reached a multi-month low at 2.62. The previous significant market correction ended mid November with the Ratio low at 2.57 at that point.
Supporting Charts
Bonds TLT: Pre-open today has printed its lowest level since Sep 2011.
Oil USO: Pre-open today has printed its highest level since Sep 2012. Momentum is positive and up.
Gold GLD: Last week printed its lowest level since Aug 2010.
Silver SLV: Last week printed its lowest level since Aug 2010.
Dollar Index: Held major poc support at 80.15 in June and is now approaching the May high.
EURUSD: Weak price location since last week when it broke below 1.3081, 1/2R off April low. Sharply lower today to a 33day low. Next Support is the maj poc at 1.2777
