posted 09.05 a.m. est
pre-open comment Thursday 5th September
The minor (26day) poc migrated to 1638 and this level was rejected early as ES auctioned higher, negating any negative implications of Tuesday’s red-at-top high. As I wrote recently “the implications of the red and green imbalances are less reliable close to a poc until one side wins”. Significant Buying marked above 1644.50 poc would be a further positive here (as reported yesterday Momentum (although negative) turned up) so would breadth numbers (below) rising above 50.
Resistance is at the 1/2R off August high as follows: ES 1665, SPY 167.00, IWM 102.90. Note that QQQ is relatively strong and printing above 76.11, its 1/2R.
First Level Resistance = 1665 (min 1/2R off Aug high)
First Level Support = 1644.50 (5mn poc)
Second Level Support = 1638 (26day poc)
Stocks>50dyma numbers: Nyse 42%, Nasdaq 49%. Numbers >50 are considered supportive.
Sentiment: Problem getting the Rydex numbers today. Will update this number asap.
Supporting Charts – *means comment has changed
*Bonds TLT: Chart is still in a weak price location below the Resistance at 107.22, the 4mn poc and lower this week to print close to the August low.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in a stronger price location. Momentum is up and positive.
*Gold GLD: Chart is currently holding (just) above 134.17, the 12mn poc – 134.18 being the pre-open low. Momentum (although positive) has turned down.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
EURUSD: Is now printing in a weaker price location below 1.3228, the 1/2R off Feb high. There is Support at the 1.3063 poc.
