Pre-open comment Friday 12th September
Aggressive Buying was marked on Thursday. In the longer timeframe this activity can be considered Reactive because it took place below the 1998.50 poc. If ES can print time above 1998.50 it would be in a strong price location. Pre-open that level has been probed. See yesterday’s comments.
ES First Level Resistance = 1998.50 (50dy)
ES First Level Support = 1949.00 (4mn)
ES Major Support = 1872
Stocks>50dyma numbers: Nyse 53% (from 50%), Nasdaq 56% (from 49%), R2000 53% (from 46%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 9.90. Monday’s ratio was 10.1 and I only have one ratio higher than that which is 10.47 on 07/29.
Supporting Charts:
Bonds TLT: Chart is sharply lower from the recent high and in a weak price location below 117.15 (maj poc). Pre-open today chart has printed a twenty seven day low.
Dollar Index: The four year high is 84.75 (July last year) and chart has printed close to this level this week.
Gold GLD: recently found resistance at 124.15, the 30mn poc and fell sharply and is currently printing below the June low. GLD has been consolidating for a year in a contracting type of pattern and we had been expecting a directional move to occur.
Oil USO: Has sold-off since mid June. The Support at 34.17 (1/2R off 2009 low) has been tested this week but currently chart prints back above this level.
EURUSD: Last Thursday broke the Support at 1.3066 (3yr poc) and subsequently printed its lowest level since July last year.
