S&P 500 emini pre-open Monday 7th July

posted 09.05 a.m. est

See highlighted comments from last Monday. All Value Areas last week were generated above 1949.00, the 3mn poc, which implies strength. Despite increasinging worrying Sentiment readings, as long as ES holds above this First Level Support it is in a strong price location.

ES First Level Support = 1949.00 (3mn poc)
ES LT Support = 1872.00 (maj poc)

Breadth: CP Market Timing System – Nyse, Nasdaq and R2000 all stayed postive. U.K. stayed negative.
Stocks>50dyma numbers: Nyse 80%, Nasdaq 81%, R2000 83%, UK 58%. Numbers >50 are considered supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 9.87. Previous week the ratio reached 10.07 which is the highest in my database. VIX closed at 10.32 on Thursday, the lowest close since Feb 2007.

Supporting Charts:
Financial Sector XLF: printing above 22.04, its Major 1/2R level.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location.
Bonds TLT: Remains in a strong LT price location above 107.24, the 2yr poc but printed a 46day low on Thursday.
Dollar Index: sold off in June but has found Support last week at the 79.76 maj poc. Dollar bulls would want to see this level hold. Momentum is negative.
Gold GLD: The 30mn poc migrated to 127.00 last week. Pre-open today chart prints just below this level.
Oil USO: printing above 37.96 maj poc in a strong price location. Momentum (although positive) is down.
EURUSD: Last week the 12mn poc migrated slightly to 1.3602. Chart prints just below this level today.