S&P 500 emini pre-open Tuesday 16th September

Posted 08.17 a.m. est

Please note we are now following the December contract.

See yesterday’s highlighted comments. The most recent imbalances are the Effective Selling on Friday and with increasing negatives in the ST, e.g. falling Breadth numbers (see below) I am cautious here. First minor positive would be ES holding yesterday’s low and printing time around 1977.

ETFs: Earlier in the month I noted that Momentum (PriceOsc) had turned down for all four major Stock Index ETFs. I mentioned again that when that happens the indicator will usually reach zero which it is closely approaching now. Bulls would want to see the indicator turning up and Key Chart IWM back above 115.41, 1/2R off July high, which it closed below on Monday. There is 2yr Support for this chart at 111.64.

ES First Level Resistance = 1998.50 (50dy)
ES First Level Support = 1949.00 (4mn)
ES Major Support = 1872

Stocks>50dyma numbers: Nyse 42% (from 44%), Nasdaq 44% (from 51%), R2000 40% (from 47%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 8.72. The highest ratio being 10.47 On 07/29.

Supporting Charts:
Bonds TLT: Chart is sharply lower from the recent high and in a weak price location below 117.15 (maj poc). Next Support at 112.27, the 12mn poc.
Dollar Index: The four year high is 84.75 (July last year) and chart is printing close to this level.
Gold GLD: Recently found resistance at 124.15, the 30mn poc and fell sharply. Last week printed its lowest level since January.
Oil USO: Interesting chart. Has sold-off since mid June but the Support at 34.17 (1/2R off 2009 low) is currently holding. Possibility of a turn here but price printing time below this level would be very weak price location and immediately suggest lower.
EURUSD: Earlier in the month chart broke below 1.3066 (3yr poc) and has subsequently printed its lowest level since July last year. This level is now Resistance.