posted 09.18 a.m. est
pre-open comment Monday 16th September
Note: this week we will switch to the ES December contract.
Aggressive Buying was marked on Monday and Wednesday last week and ES was higher and closed strong so this was Effective Buying on the weekly timeframe. Significantly, on Friday the 12mn poc migrated to 1685.50. This is now First Level Support. No Significant Selling has been marked for eight days. Following the improvement in ST analysis noted pre-open last Monday (see highlight) the LT analysis has now also improved. Pre-open today ES (Dec) is sharply higher and has printed above 1700.
Breadth: CP Market Timing System turned neutral (from negative) for Nyse, turned positive (from neutral) for Nasdaq and UK remained positive.
Stocks>50dyma numbers: Nyse 58%, Nasdaq 57%, R2000 51%, UK 64%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio at 3.96. 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
Bonds TLT: Chart remains in a weak price location below 107.22, the 4mn poc and prints 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.
Gold GLD: Chart is currently printing below 134.17, the 12mn poc, in a weak price location. Friday printed a 25day low. Momentum is now negative and 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: Currently printing in a stronger price location above 1.3228, the 1/2R off Feb high.
