Monday generated a lower Value Area on high Volume and Aggressive Selling was marked again. The only potential Support I can find at current levels is 2045.00 which was a previous pooc of some importance. In any case price below 2095.00 (10mn poc) is weak location. I need to see Significant Buying marked above that level before considering new longs. Breadth numbers deteriorated significantly yesterday, see below.
Second Level Resistance = 2107.00
First Level Resistance = 2095.00
Possible Support at 2045.00 (prev poc)
Stock Index ETFs: Momentum is negative and down for SPY, DIA, QQQ and positive but down for IWM. Also see current price relative to poc levels in Monday’s eBook. SPY, QQQ, and DIA closed weak below there local pocs. Key chart could be IWM which closed very close to 124.50, its 7mn poc.
Stocks>50dyma numbers: Nyse 27% (from 43%), Nasdaq 43% (from 56%), R2000 43% (from 57%). Numbers >50 are supportive.
Sentiment:My version of the Rydex Assets Ratio was slightly higher at 10.97. Market has been lower for four days and the Ratio has been higher each of those days. That doesn’t indicate any fear. I prefer to see the ratio falling if looking for a low. But note that six days ago the ratio fell to 8.78 which was a seven month low.
Supporting Charts:
Bonds TLT: closed on Monday back above 117.14, the maj poc having reached a nine month low on Friday. Price below this level is weak location.
Dollar Index: printing back above 94.67, the 12mn poc, in a stronger price location.
Gold GLD: in May a probe into the Resistance at 117.60, the 1/2R off the November low, was rejected. Price above this level would be first sign of LT strength. GLD remains in a weak location.
Oil USO: the 16mn poc recently migrated to 20.24. USO closed below that level on Monday at a 22day closing low.
EURUSD: is today printing below 1.1340, the 12mn poc
