S&P 500 emini pre-open Thursday 17th July

posted 08.50 a.m. est

Dayframe: During Wednesday’s session ES almost reached July’s high but overnight has sold off. The minor 1/2R off July high at 1961.75 has provided Support and one hour pre-open ES is up from there to test 1967.50, the minor poc which could be intraday Support or Resistance today.

There are concerns for equities re strength in Bonds and Dollar, Sentiment extremes, Breadth and negative Momentum divergences but only Significant Selling marked below 1949.00 would be a sign of weakness in the LT.

ES First Level S/R = 1967.50 (min poc)
ES First Level LT Support = 1949.00 (3mn poc)

Stock Index ETFs: Key chart IWM continue to under-perform, down by 1.5% this week and now approaching the 2yr poc Support at 112.30.

Stocks>50dyma numbers: Nyse 61% (from 60%), Nasdaq 50% (from 53%), R2000 49% (from 51%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 8.84. Bear fund assets that I follow were up 17%. The highest ratio in my database was on 06/26 at 10.07.

Supporting Charts:
Financial Sector XLF: printing above 22.04, its Major 1/2R level in a strong price location.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location and has today printed its lowest level since February.
Bonds TLT: in a strong ST price location above 112.27, the 10mn poc.
Dollar Index: sold off in June but found Support at the 79.76 maj poc. Dollar bulls would want to see this level hold.
Gold GLD: has sold off this week and prints below 30mn poc in a weaker price location.
Oil USO: up pre-open today but still prints below 37.96, the maj poc in a