S&P 500 emini pre-open Tuesday 23rd September

posted 07.47 a.m. est

The 50dy poc at 1998.50 was Support on Friday but was immediate Resistance after Monday’s open, see chart and yesterday’s highlighted comments.

Breadth has been weak recently. The CP Market Timing System is negative for all US Market Charts and the %Stocks>50dyma for Nyse has been below 50 for seven days and deteriorated again yesterday, see below. Bulls need to see these numbers improve.

Key Charts/Levels: Pre-open today IWM is printing at Key 2yr Time Support at 111.64. Also, DIA prints just above 170.38, its 4mn Time Support. Price printing time below these levels would indicate further weakness. USO is also a Key chart, see below.

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

Stocks>50dyma numbers: Nyse 35%, Nasdaq 38%, R2000 32%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 9.02 largely due to Bear Fund Assets that I follow being down 20%. The ratio increasing on a down day is not usually ST bullish, The highest ratio is 10.47 On 07/29.

Supporting Charts:
Bonds TLT: Chart has so far held the Support at 112.27, the 12mn poc, but prints below the Resisatnce at 117.15 (maj poc).
Dollar Index: chart printed a new four year high on Monday.
Gold GLD: Recently found resistance at 124.15, the 30mn poc and fell sharply. On Monday chart printed its lowest level since early January.
Oil USO: Has sold-off since mid June. The Support at 34.17 (1/2R off 2009 low) is Key. Price printing time below this level would be very weak location and suggest lower.
EURUSD: Earlier in the month chart broke below 1.3066 (3yr poc) and on Monday printed its lowest level since July last year. 1.3066 is now Resistance.