S&P 500 emini pre-open Wednesday 24th September

posted 08.30 a.m. est

I marked Aggressive Selling on Tuesday. These red-at-bottom lows are tested within a day (or two) 80% of the time. I’m not considering new longs unless 1) ES prints time back above the 1998.50 poc. 2) That poc migrates lower. 3) ES finds Support lower in 1949 area and Buying is marked.

Key Charts/Levels: Pre-open today IWM is printing just below Key 2yr Time Support at 111.64. DIA prints just above 170.38, its 4mn Time Support. Price printing time below these levels would indicate further weakness. USO is also a Key chart, see below.

ES First Level Resistance = 1998.50 (50dy)
ES First Level Support = 1949.00 (4mn)
ES Major Support = 1872

Stocks>50dyma numbers: Nyse 28% (from 35%), Nasdaq 33% (from 38%), R2000 27% (from 32%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 9.2. The market is down this week but the ratio has increased indicating that the Rydex traders are looking to but the dip. This is not usually ST bullish. The highest ratio in the database is 10.47 On 07/29.

Supporting Charts:
Bonds TLT: Chart has so far held the Support at 112.27, the 12mn poc, but prints below the Resisatnce at 117.15 (maj poc).
Dollar Index: chart printed a new four year high on Monday and is currently printing close to this level.
Gold GLD: Recently found resistance at 124.15, the 30mn poc and fell sharply. On Monday chart printed its lowest level since early January.
Oil USO: Has sold-off since mid June, down to the Support at 34.17 (1/2R off 2009 low) which is Key. Price printing time below this level would be very weak location and suggest lower.
EURUSD: Earlier in the month chart broke below 1.3066 (3yr poc) and on Monday printed its lowest level since July last year. 1.3066 is now Resistance.