S&P 500 emini pre-open Wednesday 20th August

posted 09.25 a.m. est

Tuesday generated another higher Value Area entirely above the 1949 poc which is a sign of strength in the ST. Aggressive Buying (green-at-top) was marked. No Significant Selling has been marked for eight days and have so far not Reacted to the current probe above the VAH at 1973 (dashed) which is where ES prints pre-open today, see yesterday’s comments.

ES First Level Support = 1949.00 (4mn poc)
ES Major Support = 1872 (maj poc)

Stocks>50dyma numbers: Nyse 53% (from 50%), Nasdaq 48% (from 46%), R2000 51% (from 49%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 7.65. On 07/29 the ratio reached 10.47, the highest in my database.
VIX closed at 12.21 having reached 17.57 on 08/01, the highest reading since early April.

Supporting Charts:
Bonds TLT: last week printed its highest level since May last year which represented a test above the Resistance area between 116.70 and 117.15. Pre-open today chart prints back below that band. Bulls would want to see time printed back this Resistance as soon as possible.
Dollar Index: currently printing at its highest level since September
Gold GLD: the 30mn poc recently migrated to 124.15. Currently holding that level but the Support could be tested this week.
Oil USO: On Tuesday printed its lowest level since February.
EURUSD: Chart prints below 1.3416, the 1/2R off 2010 low, in a weak price location and has today printed its lowest level since September.