posted 08.50
Following Monday’s Aggressive Selling (Ineffective), Buyers Reacted (green-at-bottom) immediately on Wednesday and auctioned ES back to 1949 which is now the 60day poc. Pre-open further time is being printed here. If ES can hold above this level it is in a strong price location but Effective Selling marked below 1949 would be a sign of ST weakness.
Dollar Index and Bonds (TLT) have held LT strong price location which is a LT concern for equities, see below. See also Sentiment, below.
Stock Index ETFs: In the LT bulls would want to see 114.00 (1/2R) on the IWM chart hold.
ES First Level Resistance = 1949.00 (60dy poc)
ES LT Support = 1872.00 (maj poc)
Stocks>50dyma numbers: Nyse 74% (from 71%), Nasdaq 66% (from 62%), R2000 68% (from 64%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 8.56 but Tuesday’s ratio at 9.63 is the highest in my database
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. Momentum (although negative) is up.
Dollar Index: Holds a strong price location above 79.76, the maj poc but Momentum has turned negative.
Gold GLD: Last Thursday Gold posted its biggest one day jump in nine months and GLD now prints in a strong/stronger price location above 124.12, the 2yr poc. Consolidation above this level this level would be a sign of further strength.
Oil USO: printing above 37.96 in a strong price location and approaches the September high at 39.54.
EURUSD: last week the 12mn poc moved lower to 1.3532 and currently chart is holding that Support.
