pre-open comment Thursday 9th August
Updating from last pre-open comment which was Tuesday 31st July. Significant Selling was marked in late July/early August but the Selling was only strong enough to auction ES down to the Second Level Support given at that time which was the 5mnth poc at 1348 (see previous highlighted comments). Holding that Support keeps ES in a strong price location in the longer timeframe. It would be an interesting development if that poc (now 6mn poc) were to migrate. Currently it has not.
Price location: Strong. All four major US index ETFs print above their 1/2R levels off 2012 high.
%Stocks>50dyma Nyse 75% and Nasdaq 58%. Numbers above 50 are healthy.
Large Caps had been outperforming Small cap and Technology but over the last ten days SPY and IWM are both up about 3% with Qs and Tech sector up about 5%.
First Level Support = 1348 (6mn poc)
Second Level Support = 1334.50 (1/2R off March high) SPY=134.67 (1/2R)
Sentiment: My version of the Rydex Assets Ratio reached a 54 day high on 31st July. Yesterday it reached a 28 day low at 3.18.
VIX hit a four month low yesterday at 15.27.
