pre-open comment Tuesday 9th July
Note: this was posted at 04.40 a.m. est.
See yesterday’s highlighted comments. Monday generated a higher, albeit narrower, Value Area printed entirely above the 1628 poc which is now the level to monitor. A further positive would now be Significant Buying marked above this level.
1st Level Support = ES 1628.00 (3mn poc)
2nd Level Support = ES 1616.75 (1/2R off May high)
Stocks>50dyma numbers: Nyse 54%, Nasdaq 70%, R2000 71%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
Sentiment: Note Rydex data was unavailable when I published this post. I will update as soon as possible. My version of the Rydex Assets Ratio ended last week at 2.82. Previous week the ratio reached a multi-month low at 2.62. The market has rallied from that point but the ratio is not much off its low and from a contrarian p.o.v. this is usually a positive in the ST.
Supporting Charts
Oil USO: on Monday printed its highest level since Sep 2012. Momentum is positive and up.
Gold GLD: w/e 06/28 chart printed its lowest level since Aug 2010.
Silver SLV: w/e 06/28 chart printed its lowest level since Aug 2010.
Dollar Index: Held major poc support at 80.15 in June and is now approaching the May high.
EURUSD: Weak price location since w/e 06/28 when it broke below 1.3081, 1/2R off April low. Sharply lower at the end of last week. Next Support is the maj poc at 1.2777
