S&P 500 emini pre-open Thursday 10th July

posted 09.02 a.m. est

See previous highlighted comments. On Wednesday ES rallied to test the 1966.50 (min poc) late in the session. The test was rejected though and pre-open today the 1949 Support has been probed where ES has stalled. Bulls would hope this Support holds or is quickly rejected if tested. Significant Selling marked below this level would be a sign of weakness.

The other Key level we have been watching this week is the 5mn Support at IWM 117.15. Wednesday’s high came in at 117.09 and chart has declined sharply from there. There is 2yr Support lower at 112.30.

ES First Level Support = 1949.00 (3mn poc)
ES LT Support = 1872.00 (maj poc)

Stocks>50dyma numbers: Nyse 69% (from 70%), Nasdaq 64% (from 63%), R2000 67% (from 68%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 9.61 which puts it back close to the highest ratio in my database which was on 06/26 at 10.07.

Supporting Charts:
Financial Sector XLF: printing above 22.04, its Major 1/2R level.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location and today close to the June low.
Bonds TLT: Remains in a strong LT price location above 107.24, the 2yr poc.
Dollar Index: sold off in June but found Support last week at the 79.76 maj poc. Dollar bulls would want to see this level hold.
Gold GLD: The 30mn poc migrated to 127.00 last week. Chart prints above that Support today at its highest level since mid-March.
Oil USO: pre-open today prints just below the maj poc Support (37.96) but we have further Support at 37.30 (1/2R off 2011 high). Bulls would want to see this level hold and Momentum turn back up.
EURUSD: Last week the 12mn poc migrated slightly to 1.3602. Chart prints almost at that level today.