posted 08.02 a.m. est
On Monday Buyers Reacted (green-at-bottom) to a test of last week’s low. There is Support at ES 1949 and in the ST there is minor Resistance at 1985.00 (1/2R off recent high). I would want to see price location and breadth data improve before considering the long side.
Key Charts/Levels: Pre-open today IWM is printing below 111.64 (2yr poc) and DIA prints just above 170.38 (now 18mn poc). Key Chart TLT has reached Resistance, see below.
ES First Level Resistance = 1998.50 (50dy)
ES First Level Support = 1949.00 (4mn)
ES Major Support = 1872
Stocks>50dyma numbers: Nyse 26% (from 28%), Nasdaq 33% (from 32%), R2000 26% (from 27%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 8.75. The highest ratio in the database is 10.47 On 07/29.
Supporting Charts:
Bonds TLT KEY Chart: recently held the Support at 112.27, the 12mn poc, and rallied. TLT was sharply higher on Monday and briefly probed the Resistance at 117.15 (maj poc).
Dollar Index: has printed a new four year high today.
Gold GLD: Recently found resistance at 124.15, the 30mn poc and fell sharply. Pre-open today has printed its lowest level since early January.
Oil USO KEY Chart: Has sold-off since mid June, down to the Support at 34.17 (1/2R off 2009 low) which is Key. Possibilty of a turn here but 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 has today printed a two year low.
