Pre-open comment Monday 22nd June
Last week saw a rejected probe below the 4mn Value Area low and ES rallied back above the 2095.00 poc. Following Friday’s price action that 10mn poc has once again migrated back to 2107.00. These two levels give us a guide. As long as ES prints above 2107.00 it is in a strong price location but time spent below 2095.00 would be weak price location and a negative.
First Level S/R = 2107.00
Second Level Support = 2095.00
Momentum (PriceOsc) although still negative for DIA, SPY and QQQ has turned up. IWM is positive and up.
Market Charts: Nyse and UK remained negative, Nasdaq turned neutral, R2000 turned positive.
Stocks>50dyma numbers: Nyse 46%, Nasdaq 60%, R2000 61%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 8.78 which is a seven month low. Bear fund assets that I follow reached their highest level this year
Supporting Charts:
Bonds TLT: has found Support at 117.14, the maj poc. Price below this level would be very weak price location.
Dollar Index: printing back below 94.67, the 12mn poc, in a weaker price location.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected. Price above this level would be first sign of LT strength.
Oil USO: Last week the 16mn poc migrated to 20.24. USO closed below that level on Friday.
EURUSD: currently printing very close to 1.1340, the 12mn poc
