Russell 2000 ETF, IWM broke the 115.35 (maj poc) Support on Tuesday.
Along with the Russell 2000 ETF, other charts are printing in weaker positions and breadth numbers also weakened, see below.
ES analysis: Tuesday generated a Value Area entirely below 2087, the maj poc which is weak price location. At current levels only Significant Buying (green)marked above 2087 could get me looking at the long side.
First Level Resistance = 2087.00 (maj poc)
Second Level Support = 2041.00 (poc)
Stocks>50dyma numbers: Nyse 48% (from 53%), Nasdaq 49% (from 51%), R2000 56% (from 58%). Numbers >50 are supportive.
Please note: I have shown the June contract but I will be switching to the September contract. For now I want to show where the June contract is printing relative to important levels.
Sentiment: My version of the Rydex Assets Ratio was higher at 4.69. SPX is lower over last three days with the ratio higher, this is not usually a bullish pattern in the ST. On 04/26 the ratio reached 5.27 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: On Tuesday TLT printed its highest level since early 2015.
Dollar Index: printing back above 93.95, the 1/2R off the May low in a stronger price location. Resistance is at 95.25, the 2yr poc.
Gold: GLD – earlier in the month the chart held 115.50 which was previously the major poc and is now printing above 118.22, the maj poc, in a strong price location.
Oil: Last Wednesday USO printed its highest level since November but has sold-off sharply from there to close on Tuesday at a fifteen day low.
EURUSD: printing below 1.1313, the 4yr poc, in a weaker price location.
There is Support just below 1.11 which is the 1/2R off last year’s low. Price below that level would suggest further weakness.
