S&P 500 emini pre-open Tuesday 9th September

posted 09.23 a.m. est

Dayframe: Monday’s Value Area was “inside” the previous VA. Price action for the last ten days is now centred around 1998.50 which is also the local poc. The VAH of price distribution over this period is at 2002.50 and VAL is 1994.50 (both dashed).

ES First Level S/R = 1998.50 (36dy)
ES Second Level Support = 1949.00 (4mn)
ES Major Support = 1872

A Key Chart to monitor at the start of this week is IWM. Chart needs to hold above 115.41, 1/2R off July high, to maintain a strong price location. Last month Key Charts found low at their given Support and have rallied strongly (see eBook). These proven levels will be useful to monitor.

Stocks>50dyma numbers: Nyse 58% (from 60%), Nasdaq 56% (from 54%), R2000 55% (from 54%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 10.1. I only have one ratio higher than that and that is 10.47 On 07/29.

Supporting Charts:
Bonds TLT: Chart was sharply lower last week having reached its highest level in fifteen months the previous week. Pre-open today it prints below 117.15 (maj poc) in a weakened price location.
Dollar Index: on Mnoday printed its highest level since July last year.
Gold GLD: chart redently found resistance at 124.15, the 30mn poc, and last week fell from there sharply to a 50dy low. This chart has been consolidating for a year 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 at 34.17, the 1/2R off 2009 low and this was almost tested on Monday.
EURUSD: Last Thursday broke the Support at 1.3066 (3yr poc) and subsequently printed its lowest level since July last year. New low for this move today.