posted 09.17 a.m. est
pre-open comment Wednesday 21st August
Responsive Buying (green-at-bottom) was marked on Tuesday at the 1642, the 60day VAL, see S&P-500 emini price distribution off June low
This level cannot necessarily be relied on for Support but interesting that ES has paused here. Yesterday’s session generated an overlapping VA so this is not yet Effective Buying and, as previously mentioned, I need to see that before considering new longs.
SPY Support at the 164.90 poc held again on Tuesday, this is the chart to watch – see previous highlighted comments.
Stocks>50dyma numbers: Nyse 53% (from 46%), Nasdaq 54% (from 49%), R2000 52% (from 43%). Numbers >50 are considered supportive.
1st Level Resistance = ES 1686.00 (3mn poc)
1st Level Support = ES 1627.00 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 3.55. Last week it reached 4.07, a 40dy high. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: A minor rally w/e 08/09 found Resistance at the 4mn poc. Chart printed a two year low on Monday.
Oil USO: pre-open low is 37.31, the 1/2R off 2011 high. Price below that Support would be weak location.
Gold GLD: Chart approaches Resistance at 134.17, the 12mn poc. Time spent above this level would put the chart in a much stronger price location.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price printing time back above that level.
EURUSD: Chart has reached 1.3418, the 1/2R off June 2010 low but has not yet overcome this Resistance.
