SPY and ES approaching Support
posted 06.55 a.m. est
As mentioned previously, the Selling (red) marked at the end of last week can both be labelled “Responsive” in the longer timeframe (even the dayframe “Aggressive” Selling on Friday). This is because it was marked above the 12mn poc at 1685.50. i.e. the Selling was auctioning ES back to that level of Value. If Significant Selling is marked below 1685.50 it would be a more negative indication. ST Bulls would hope that First Level Support holds.
Stocks>50dyma numbers: Nyse 64%, Nasdaq 61%, R2000 61%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 3.68. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Printed a fifteen day high on Monday but remains in a weak price location below 107.22, the 6mn poc.
Oil USO: Bulls would want to see chart hold (or quickly recover) a strong price location above its Support band, i.e. 37.31, the 1/2R off 2011 high and 37.93, its maj poc. Closed just below that Support Band on Monday.
Gold GLD: Despite printing an eight day high last Thursday, the chart remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative and down.
Dollar Index: Last week’s sharp sell-off briefly tested the important Support at 80.15 (major 1/2R and poc). Dollar Bulls would hope this holds, price printing time below this level would put the chart in an extremely weak location.
EURUSD: On Thusday printed its highest level since February. Momentum is up and positive.
