emini 10th September 2019 – pre-open
Last four Value Areas were generated entirely above 2927, an indication of strength. As long as ES holds above that level it is in a strong position.
Stocks>50dyma numbers: Nyse 57% (from 51%), Nasdaq 48% (from 44%), R2000 51% (from 44%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 15.87. Last Tuesday’s ratio at 14.0 was the lowest since 10th June. I noted yesterday that over the last two weeks the ratio has fallen and the market has rallied. This is usually a positive indication.
Bonds – TLT: 07/31 TLT spiked above 132.80, the maj Value Area High and has rallied powerfully reaching a new high on 08/28. Has retraced a little from there.
Dollar Index: w/e 06/14 the three year poc migrated to 97.00 – now Support. The July high was tested last week but the index is currently printing below that level.
Gold: GLD rallied strongly to its highest level since early 2013 and had been printing above 143.0, the 1/2R off 2011 high, for two weeks. On Friday GLD closed below that Support.
Oil: USO – closed on Friday above 11.41, the major poc. Bulls would want to see USO printing time above that important level.
GBPUSD: The 1/2R off this year’s low at 1.2910, was broken in mid-May and chart declined quickly from there. In July the chart broke below 1.2481, the 30mn poc and fell sharply into a low in early August. Last week that August low was re-tested and quickly rejected. GBPUSD has rallied strongly from there.
EURUSD: in early July the chart broke back below 1.1310, the Major poc which put EURUSD back in a weaker position. Last week the chart printed its lowest level since May 2017. Has rallied a little from there.
USDJPY: is printing below 108.90, the major 1/2R off the 2016 low in a LT weak position.
