S&P 500 emini pre-open analysis: ES broke below 2080.25, the 1/2R off May high and this level is now First Resistance. Overnight ES has printed as low as 2053.75. Difficult to find vaild Support here and struggling to find any positives with technicals looking weak. e.g. Momentum (PriceOsc) is negative and down for all four Stock Index ETFS. Also Breadth numbers deteriorated and these also need to improve, see below.
Second Level Resistance = 2095.00 (poc)
First Level Resistance = 2080.25 (1/2R)
Stocks>50dyma numbers: Nyse 39% (from 43%), Nasdaq 32% (from 36%), R2000 35% (from 37%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 9.6. The ratio fell as low as 8.67 on 07/14 which was an eight month low.
Supporting Charts:
Bonds TLT: On Tuesday printed its highest level since April. Momentum (PriceOsc) is still positive and up. There is Resistance at 126.69, the 1/2R off this year’s high. Futures indicate a higher Open for TLT today.
Dollar Index: currently printing below 96.76, the 1/2R off March high, in a weaker ST price location.
Gold GLD: Long term charts for Gold indicate major Support at the July price low. “If” this is broken Gold (and GLD) would be in a very weak price location.
Oil USO: printed a new low on Tuesday.
EURUSD: is today printing above 1.0961, the 1/2R off March low in a stronger ST price location. There is Resistance at 1.1241, major 1/2R.
