pre-open comment Thursday 29th August
See yesterday’s highlighted comments on graphic. Buyers Responded early in Thursday’s session just above the previous poc at 1627 which I consider proven Support – see chart. ES then auctioned higher with the high coming in at the 1644.50 poc Resistance. This level has again been Resistance overnight. I repeat yesterday’s comment “Currently I will remain cautious here until Significant Buying is marked above 1644.50 and breadth improves (see numbers below). Price below 1627 would suggest further weakness”.
Stocks>50dyma numbers: Nyse 43%, Nasdaq 49%, R2000 45%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 3.32. Yesterday’s ratio at 3.19 was a 24day low. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts – *means comment has change
Bonds TLT: A minor rally w/e 08/09 found Resistance at the 4mn poc. Chart printed a two year low last week.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in much stronger price location.
Gold GLD: Chart is now printing above the Resistance at 134.17, the 12mn poc. This is stronger price location.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
*EURUSD: The Support band is between the 4mn poc at 1.3257 and the 1/2R at 1.3228. As I write pre-open today, the chart prints just below 1.3228. Price printing time below this Support would suggest lower.
