S&P 500 emini pre-open Wednesday 16th July

S&P 500 emini pre-open Wednesday 16th July

posted 09.25 a.m. est

Tuesday generated a lower, wider Value Area centred around 1967.50 which is now the minor poc and First Level Support with ES printing around mid 1970s pre-open. No markable Selling for fourteen days, see yesterday’s comments.

There are concerns for equities re strength in Bonds and Dollar, Sentiment extremes, Breadth and negative Momentum divergences but as long as ES holds above 1967.50 it is in a strong price location. First sign of weakness in the LT would be Significant Selling marked below 1949.00.

ES First Level Support = 1967.50 (min poc)
ES First Level LT Support = 1949.00 (3mn poc)

Stock Index ETFs: Small Caps (IWM) continue to under-perform. Price above IWM 117.15, the 5mn poc, would be a positive. See breadth number below for R2000.

Stocks>50dyma numbers: Nyse 60% (from 65%), Nasdaq 53% (from 60%), R2000 51% (from 60%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 9.94. Very close to the highest ratio in my database which was on 06/26 at 10.07.

Supporting Charts:
Financial Sector XLF: printing above 22.04, its Major 1/2R level in a strong price location.
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location.
Bonds TLT: in a strong ST price location if it holds above 112.27, the 10mn poc.
Dollar Index: sold off in June but found Support at the 79.76 maj poc. Dollar bulls would want to see this level hold.
Gold GLD: has sold off this week and prints below 30mn poc in a weaker price location.
Oil USO: prints below 37.96, the maj poc, and below 37.30 (1/2R off 2011 high) in a weak price location
EURUSD: printing below 1.3602, the 12mn poc, at a 20day low.