Pre-open Monday 10th August
Last week’s high came in at the 2107.00 Resistance (poc) and ES sold off from there. The 1/2R Support at 2080.25 was broken but ES is printing above that level pre-open today. This level is worth watching as it could be Support or Resistance early this week.
Momentum (PriceOsc) is negative for all four Stock Index ETFS except QQQ and is heading lower for all four. This needs to improve. Breadth numbers also need to improve, see below.
Second Level Resistance = 2107.00 (poc)
First Level Resistance = 2095.00 (poc)
Potential S/R today = 2080.25 (1/2R)
CP Market Charts: All major Market Charts remain negative.
Stocks>50dyma numbers: Nyse 35%, Nasdaq 33%, R2000 33%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 10.0. The ratio fell as low as 8.67 on 07/14 which was an eight month low.
Supporting Charts:
Bonds TLT: On Friday chart closed at its highest level since April. Momentum (PriceOsc) is still positive and up. There is Resistance at 126.69, the 1/2R off this year’s high. Futures indicate a lower Open for TLT today.
Dollar Index: as long as chart holds above 96.76, the 1/2R off March high, it is in a strong price location.
Gold GLD: Long term charts for Gold indicate major Support at the July price low. “If” this is broken Gold (and GLD) would be in a very weak price location.
Oil USO: closed at a new low on Friday
EURUSD: is today printing below 1.0961, the 1/2R off March low in a weak price location. Price relative to this level would indicate ST strength/weakness.
