posted 09.25 a.m. est
pre-open comment Friday 6th September
Thursday’s session generated a higher, narrower Value Area on less Volume. Pre-open today ES has printed as high as 1663.50, just below Resistance at 1665 (min 1/2R off Aug high). SPY and IWM also approach their equivalent Resistance at the 1/2R off August high: SPY 167.00, IWM 102.90. Note that QQQ is relatively strong and printing close to its August high.
First Level Resistance = 1665 (min 1/2R off Aug high)
First Level Support = 1644.50 (5mn poc)
Second Level Support = 1638 (26day poc)
Stocks>50dyma numbers: Nyse 45%, Nasdaq 49% R2000 42% Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio has changed very little over the last eight days. Currently at 3.26. 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). Other Sentiment indicators showed an increase in Bears this week, some indicating most pessimistic levels in months (contrarian bullish) more in today’s webcast.
Supporting Charts – *means comment has changed
Bonds TLT: Chart is still in a weak price location below the Resistance at 107.22, the 4mn poc and lower this week to print close to the August low.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in a stronger price location. Momentum is up and positive.
*Gold GLD: Chart is currently printing (just) below 134.17, the 12mn poc. Momentum (although positive) has turned down.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
EURUSD: Is now printing in a weaker price location below 1.3228, the 1/2R off Feb high. There is Support at the 1.3063 poc.
