S&P 500 emini pre-open Monday 4th August

this was posted at 04.05 a.m. est

Thursday’s red-at-bottom low was tested on Friday and the Value Areas for both days were generated entirely below the 1949 poc which indicates Sellers in control of the dayframe. Friday closed below the Mon-Wed Hi-Lo Range which indicates Sellers active on the weekly timeframe. However, there is close Major Support on Key Charts, see below, which should be monitored this week. If these levels are broken the possibility of a major change in trend would be signalled. Significant Buyers have been absent for sixteen days and until Effective Buying (green) is marked again (preferably above 1949) I will remain very cautious.

ES First Level Resistance = 1949.00 (4mn poc)
ES First Level Support = 1872 (maj poc)

ETFs – Key Charts/Levels (see eBook): IWM has broken below 112.30, the 2yr poc, which is now Resistance. DIA found Support on Friday at 164.23 (2yr poc). XLF Support at 21.99 (2yr poc). XLK Support at 38.42 (maj 1/2R).

Breadth: CP Market Timing System is now negative for all major Market Charts.
Stocks>50dyma numbers: Nyse 25%, Nasdaq 29%, R2000 23%, UK 26%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 8.43 having reached 10.47 on Tuesday, the highest in my database. VIX reached 17.57 intraday on Friday, the highest reading since April. On 07/03 it closed at 10.32, the lowest since Feb 2007

Bonds TLT: in a strong price location above 112.27, the 10mn poc.
Dollar Index: in early July chart found Support at the 79.76 maj poc and has moved strongly higher from there. Last week chart reached its highest level since Sep last year.
Gold GLD: printing below 127.00, the 30mn poc, in a weak price location.
Oil USO: printing below 37.96, the maj poc, in a weak price location.
EURUSD: in a weak price location below 1.3602 (12mn poc) and currently printing just above the next Support level which is 1.3416, the 1/2R off 2010 low.