posted 09.14 a.m. est
Note: we are now following the March contract.
Last week I marked Significant Selling four times and Significant Buying once. Aggressive Selling (red-at-bottom) was marked on Friday and the Value Area was generated entirely below the 2035 poc which suggests further weakness. At current levels I would only consider new longs if Significant Buying (green) is marked above 2035.00 which is now Resistance.
First Level Resistance = 2035.00 (2mn poc)
First Level Support = 1962.00 (6mn poc)
Breadth: CP Market Timing System turned negative for all Major Market Charts.
Stocks>50dyma numbers: Nyse 49%, Nasdaq 52%, R2000 54%. UK 52%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 11.04. Last week the ratio reached 13.73,the highest in the database. Historically this has been a warning for the market. Bear Fund Assets that I follow also fell to their lowest level in the database.
Supporting Charts:
Bonds TLT: chart remains in a strong price location above 117.14 (maj poc) and printed a 40day high on Friday.
Dollar Index: last week printed its highest level since March 09.
Gold GLD: remains in a weak price location if it prints below the 119.87 maj poc.
Oil USO: last week broke below the extreme low of Feb 2009.
EURUSD: tested 1.2300, major Time Support last week. Currently printing just above that level.
