posted 08.00 a.m. est
pre-open comment Monday 8th July
SPY closed above Mon-Wed Hi-Lo Range which indicates Buyers Active on this timeframe. The four stock index ETFs have cleared their Resistance. As long as these levels (highlighted on graphic) now hold as Support, charts are in a much stronger price location.
Following Wednesday’s Responsive Buying on the ES chart, I marked Aggressive Buying (green-at-top) on Friday. A further postive would be ES holding above the 3mn poc at 1628.00 which is now First Level Support.
1st Level Support = ES 1628.00 (3mn poc)
2nd Level Support = ES 1616.75 (1/2R off May high)
Chartprofit Breadth System: Nyse stayed negative, Nasdaq stayed postive, R2000 turned positive (from negative) and UK turned neutral (from negative).
Stocks>50dyma numbers: Nyse 51%, Nasdaq 68%, R2000 69%, UK 61%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
Sentiment: My version of the Rydex Assets Ratio ended the week at 2.82. Previous week the ratio reached a multi-month low at 2.62. The market has rallied from that point but the ratio is not much off its low and from a contrarian p.o.v. this is usually a positive in the ST.
Supporting Charts
Bonds TLT: on Friday printed its lowest level since Sep 2011. Momentum is negative and has turned down.
Oil USO: on Friday printed its highest level since Sep 2012. Momentum is positive and up.
Gold GLD: w/e 06/28 chart printed its lowest level since Aug 2010.
Silver SLV: w/e 06/28 chart 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 w/e 06/28 when it broke below 1.3081, 1/2R off April low. Sharply lower at the end of last week to a 33day low. Next Support is the maj poc at 1.2777
