posted 07.48 a.m. est
pre-open comment Thursday 27th June
Wednesday generated another higher but narrow Value Area. I have yet to mark Significant Buying although the next level Support (given last week) has so far held on all the charts: ES 1548; SPY 155.80; DIA 144.24; QQQ 68.62; IWM 93.62.
The market hit a new low early this week so I’ve recalculated the 1/2R of May high Resistance levels as follows: ES 1616.75; SPY 162.40; DIA 150.14; QQQ 72.05; IWM 97.10
%Stocks>50dyma numbers: Nyse 38%, Nasdaq 51%, R2000 48%. Numbers >50 are considered supportive.
Resistance = ES 1616.75 (1/2R off may high)
Support = ES 1548 (11mn poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 2.62. This is now a multi-month low. From a contrarian perspective this is worth noting. The previous significant market correction ended in mid November with the Ratio as low as 2.57 at that point.
Note that the Rydex PM assets (Investor Class) broke the May 2012 low reading. This indicates that public sentiment re Precious Metals is the most negative it has been since late 2008.
Supporting Charts
Bonds TLT: On Monday charted printed its lowest level since Sep 2011.
Oil USO: Printing below the 34.20 area of S/R. Momentum is positive but has turned down.
Gold GLD: On Wednesday printed its lowest level since Aug 2010.
Silver SLV: On Wednesday printed its lowest level since Aug 2010.
Dollar Index: Held maj Support which is the major poc at 80.15. Momentum is up and close to turning positive. Printed a seventeen day high on Wednesday.
EURUSD: Momentum is down and close to turning negative. On Wednesday broke below the minor Support at 1.3081, 1/2R off April low. Next Support is the maj poc at 1.2777
