posted 09.15 a.m. est
Over the last fifteen days I have marked no Significant Buying and Significant Selling has been marked three times. Thursday’s Aggressive Selling (red-at-bottom) is the most important being marked below 1949 (the 4mn poc) which is now First Level Resistance and a critical level for us to monitor. The obvious Support is now the major poc at 1872 although this is more than 2% lower than current price. Breadth and Price Momentum have deteriorated (more in today’s webcast).
ES First Level Resistance = 1949.00 (4mn poc)
ES First Level Support = 1872 (maj poc)
Stock Index ETFs: Key chart IWM has broken below 112.30, the 2yr poc. Time spent below this level further weakness.
Stocks>50dyma numbers: Nyse 27%, Nasdaq 33%, R2000 25%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 8.93. The ratio reached 10.47 this week (07/29) which is the highest ratio in my database. VIX spiked above 17 on Thursday, the highest level since 11th April.
There are still LT concerns for equities re the strength seen in Bonds and Dollar, see below.
Financial Sector XLF: currently printing above 22.04, its Major 1/2R level. This is a Key chart/level
EURJPY: weak looking chart in the LT.
Bonds TLT: in a strong price location above 112.27, the 10mn poc.
Dollar Index: in early July chart found Support at the 79.76 maj poc and has moved strongly higher from there reaching its highest level since Sep last year.
Gold GLD: printing below 127.00, the 30mn poc, in a weak price location.
Oil USO: printing below 37.96, the maj poc, in a weak price location.
EURUSD: in a weak price location below 1.3602 (12mn poc) and currently printing at the next Support level which is 1.3416, the 1/2R off 2010 low.
