Pre-open comment Tuesday 19th August
Monday’s Value Area was narrow (and volume was low) but it is the first (in this rally off Supprt) to be printed entirely above the 1949 poc which is a sign of strength in the ST. Over the last seven days no Significant Selling has been marked. Significant Buying has been marked three times, see chart. The VAH of the higher price range (since early June) comes in at 1973. Pre-open today this level has been tested. Reactive Selling will often appear at VAHs but if ES can hold this level it would be another positive.
ES First Level Support = 1949.00 (4mn poc)
ES Major Support = 1872 (maj poc)
ETFs – All four Stock Index ETFs have negative PriceOsc but all heading higher.
Bonds and Dollar remain strong and EURUSD weaker, see below.
Stocks>50dyma numbers: Nyse 50% (from 41%), Nasdaq 46% (from 40%), R2000 49% (from 39%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.84. On 07/29 the ratio reached 10.47, the highest in my database.
VIX closed at 12.32 having reached 17.57 on 08/01, the highest reading since early April.
Supporting Charts:
Bonds TLT: last week printed its highest level since May last year and is currently printing within the Support/Resistance area between 116.70 and 117.15
Dollar Index: currently printing at its highest level since September
Gold GLD: the 30mn poc recently migrated to 124.15. Currently holding that level but the Support could be tested this week.
Oil USO: On Monday printed its lowest level since February.
EURUSD: Chart prints below 1.3416, the 1/2R off 2010 low, in a weak price location and has today printed its lowest level since November.
