pre-open comment Tuesday 3rd September
Friday closed within Mon-Wed Hi-Lo range indicating no bias on the weekly timeframe. Previous week indicated Ineffective Buying and week before that saw Effective Selling.
ES analysis: Last week I marked Aggressive Selling twice early in the week and Responsive Buying twice later in the week. Support was found at the 1627 poc and Resistance at the 1644.50 poc. The 5month poc at 1644.50 has again been probed pre-open today and as I write ES prints just below that level. Bulls would hope time would be printed above this Resistance.
Breadth: The CP Market Timing System remained negative for Nyse, remained neutral for Nasdaq and turned negative (from positive) for UK.
Stocks>50dyma numbers: Nyse 34%, Nasdaq 40%, R2000 33%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.27. 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). VIX high on Friday was the highest since June price low.
Supporting Charts – *means comment has change
*Bonds TLT: Chart approaches the Resistance at 107.22, the 4mn poc, but has not yet printed above that level.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in a stronger price location.
Gold GLD: Chart is now printing above the Resistance at 134.17, the 12mn poc. This is stronger price location.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
*EURUSD: Is today printing in a weaker price location below 1.3228, the 1/2R off Feb high. There is Support at the 1.3063 poc.
