SPY close to Support at 169.10
posted 07.40 a.m. est
Tuesday’s session generated the seventh consecutive Value Area above the 12mn poc at 1685.50. However, the low was close to that poc Support as was the SPY low close to its 169.10 4mn poc Support. Breadth numbers still look healthy but Rydex traders turned more bullish, see below. No break of Support yet but price below 1685.50 would be weaker price location. See yesterday’s comments highlighted on graphic.
Stocks>50dyma numbers: Nyse 64%, Nasdaq 63%, R2000 64%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 4.18 which is a 78day high (this is a contrarian indicator). 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: Printed a 30day high on Tuesday just below 107.22, the 6mn poc Resistance. Price above that level would put the chart in a much stronger location.
Oil USO: Bulls would want to see chart hold (or quickly recover) a strong price location above its Support band, i.e. 37.31, the 1/2R off 2011 high and 37.93, its maj poc. Closed just below that Support Band on Tuesday.
Gold GLD: Despite printing an eight day high last Thursday, the chart remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative and down.
Dollar Index: Last week’s sharp sell-off briefly tested the important Support at 80.15 (major 1/2R and poc). Dollar Bulls would hope this holds, price printing time below this level would put the chart in an extremely weak location.
EURUSD: Last Thursday printed its highest level since February. Momentum is up and positive.
