posted 07.56 a.m. est
pre-open comment Monday 5th August
Friday’s session closed above Mon-Wed Hi-Lo Range which indicates Buyers Active once again on the weekly timeframe. Aggressive Buying (green-at-top) was marked. ES broke to a new high with no Response yet from the Significant Sellers. In the ST as long as ES holds above the minor (15day poc) at 1682.50 it is in a strong price location. The distribution pattern suggests possible Target Resistance around 1714 should ES reach that level.
1st Level LT Support = ES 1677.00 (40dy poc)
Breadth: The CP Market Timing System remained positive for all Major Market Charts.
Stocks>50dyma numbers: Nyse 75%, Nasdaq 74%, R2000 76%, UK 87%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.50 which is a 29day high but to put that in persective; 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). With the market higher than the May high the ratio has been slow to climb.
Supporting Charts
Bonds TLT: Last week chart printed its lowest level since Aug 2011. The 4mn poc migrated to 107.22 and pre-open chart prints below this level which is weak price location.
Oil USO: The major poc migrated to 37.93 and chart closed the week at that level. Bulls would want to see time printed above that poc and Momentum turning up.
Gold GLD: The June low was the lowest print since Aug 2010. Rallied from there but I would want to see chart printing above the 12mn poc at 134.17 before assuming further strength.
Silver SLV: June low was the lowest print since Aug 2010.
Dollar Index: Sampled on a 30minute basis the major poc migrated higher to 82.73. Currently in ST weak price location below that level. Bulls would want to see price printing time above that poc.
EURUSD: Has rallied strongly since testing the maj poc Support at 1.2777 on 07/09 and last week printed a 28day high. As long as 1.3065 holds (9mn poc) the chart is in a strong price location.
