S&P 500 emini pre-open Tuesday 2nd September

posted 09.02 a.m. est

In the last sixteen days I have marked Significant Buying (green) six times and no Significant Selling (red). All Value Areas in the last two weeks have been printed above the 1947Support and as long as ES holds this level it is in a strong LT price location. First Level (30day) time Support is at 1998.50 and pre-open ES prints above that level.

ES First Level Support = 1998.50 (30dy)
ES Second Level Support = 1949.00 (4mn)
ES Major Support = 1872

ETFs: Key Chart IWM prints above 115.41, its 1/2R off July high in stronger price location, Key level.. Bonds and Dollar are also strong, see below, which suggests that either these charts or equities will weaken.

Breadth: CP Market Timing System is now positive for all Major Market Charts.
Stocks>50dyma numbers: Nyse 61%, Nasdaq 54%, R2000 56%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 9.94. Only six higher ratios in the database, all in June/July this year, the highest being 10.47 On 07/29. VIX has reached a 28day low last week at 11.24, close to 10.32, the July low (and the lowest since Feb 2007).

Supporting Charts:
Bonds TLT: last week chart reached its highest level since May last year. Pre-open today is lower but holding the Key Level Support at 117.15.
Dollar Index: has today printed its highest level since July last year.
Gold GLD: chart chart found resisatnce last week at 124.15, the 30mn poc and is sharply lower today at a 50dy low. This chart has been consolidating for a year now in a contracting type of pattern and we are looking for a directional move to begin soon.
Oil USO: Has sold-off since mid June. There is Support a little lower is at 34.17, the 1/2R off 2009 low and this has not ben tested. PriceOsc, although negative, is heading higher.
EURUSD: lower again today and looks to be heading for a twelve mointh low and a test of the Support at 1.3066, the 3yr poc.