S&P 500 emini pre-open Friday 29th August

S&P 500 emini pre-open Friday 29th August

posted 09.16 a.m. est

Thursday’s session generated the ninth consecutive Value Area above 1949, the 4mn Support. After six days of Buyers resting they Reacted (green-at-bottom) to a probe towards the minor Support given previously (see yesterday’s highlighted comments). Sellers were offered opportunity for that period which they did not take. The minor time Support/Restistance has now moved higher to 1998.50 and pre-open ES prints just above that level.

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

All four stock index ETFs have Momentum up and positive. Key Chart IWM prints above 115.41, its 1/2R off July high in stronger price location. Bonds and Dollar are also strong, see below, which suggests that either these charts or equities will weaken.

Stocks>50dyma numbers: Nyse 55% (from 57%), Nasdaq 50% (from 54%), R2000 51% (from 55%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was slightly lower at 8.59. On 07/29 the ratio reached 10.47, the highest in my database. This week VIX has reached a 28day low at 11.24, close to 10.32, the July low (and the lowest since Feb 2007).

Supporting Charts:
Bonds TLT: chart is printing above the Resistance at 117.15 and on Thursday reached its highest level since May last year. Time printed above this Resistance is a positive for this chart (and a negative for equities).
Dollar Index: on Wednesday printed its highest level since July last year.
Gold GLD: is printing just below 124.15, the 30mn poc Resistance. This chart has been consolidating for a year now in a contracting type of pattern. I’m looking for a directional move to begin soon.
Oil USO:pre-open today is printing a 10dy high having printed its lowest level since February last week. There is Support a little lower is at 34.17, the 1/2R off 2009 low and this has not ben tested. PriceOsc, although negative, is heading higher.
EURUSD: on Wednesday printed its lowest level since September. Next Support is at 1.3066, the 3yr poc.