posted 08.49 a.m. est
pre-open comment Tuesday 10th September
>>if 1638 holds at the start of this week I will take it as a sign of strenth in the ST. Aggressive Buying above that level would be a further postive.<<
Aggressive Buying (green-at-top) was marked on Monday as ES broke above the 1/2R Resistance at 1665. This level is now First Level Support. ST analysis shows further improvement (see yesterday’s comments) as the Breadth numbers have now picked up, see below.
Index ETFs price location improved relative to 1/2R off August high: SPY now printing above 167.00 and IWM printing above 102.90. Note that QQQ is relatively the strongest and prints above its August high.
Stocks>50dyma numbers have improved: Nyse 56%, Nasdaq 56% R2000 50% Numbers >50 are considered supportive.
First Level Support = 1665 (min 1/2R off Aug high)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 3.22. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Chart remains in a weak price location below 107.22, the 4mn poc and prints close to the August low.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in a stronger price location. Momentum is positive but down.
Gold GLD: Chart is currently printing below 134.17, the 12mn poc in a weaker price location. Momentum (although positive) is down.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
EURUSD: Currently printing in a stronger price location above (just) 1.3228, the 1/2R off Feb high.
