posted at 08.56 a.m. est
Monday’s session generated a higher, albeit narrower Value Area on less Volume, the sixth consecutive VA generated above 1949, the 4mn poc. Significant Sellers have been absent for twelve days.
Dayframe: there is minor Support this week at 1986.50 the 15day poc.
ES First Level Support = 1949.00 (4mn poc)
ES Major Support = 1872 (maj poc)
All four stock index ETFs have Momentum up and positive. Key Chart IWM prints above 115.41, its 1/2R off July high in stronger price location. Bonds and Dollar are also strong, see below, which suggests either these charts or equities will weaken.
Stocks>50dyma numbers: Nyse 55% (from 53%), Nasdaq 51% (rom 49%), R2000 52% (from 50%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 8.04 (from 7.29). On 07/29 the ratio reached 10.47, the highest in my database. Intraday VIX reached a 27day low at 11.24, close to 10.32, the July low (and the lowest since Feb 2007).
Supporting Charts:
Bonds TLT: pre-open today chart is printing above the Resistance at 117.15. Time printed above this Resistance would be positive (and a negative for equities).
Dollar Index: on Monday printed its highest level since early September
Gold GLD: is higher pre-open today probing the 30mn poc Resistance at 124.15.
Oil USO: Lat week printed its lowest level since February and prints just above the Support at 34.17, the 1/2R off 2009 low.
EURUSD: lower this week and has today printed 1.3179 its lowest level since September. Next Support is at 1.3066, the 3yr poc.
