S&P 500 emini pre-open Wednesday 27th August

S&P 500 emini pre-open Wednesday 27th August

posted 09.16 a.m. est

Tuesday’s session generated another higher Value Area, the seventh consecutive VA generated above 1949, the 4mn poc. The Value Area was again narrower and although Volume was higher than Monday’s it was well below recent average.

Dayframe: Significant Sellers have been offered opportunity for four days with Buyers resting but so far have not been marked (absent for thirteen days now). If Sellers do not appear soon Buyers will step back in. There is minor Support this week at 1986.50 the 16day poc and price above this level is in a strong location in the ST.

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

All four stock index ETFs have Momentum up and positive. Key Chart IWM prints above 115.41, its 1/2R off July high in stronger price location. Bonds and Dollar are also strong, see below, which suggests either these charts or equities will weaken.

Stocks>50dyma numbers: Nyse 57% (from 55%), Nasdaq 55% (from 51%), R2000 57% (from 52%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 7.55 (from 8.04). On 07/29 the ratio reached 10.47, the highest in my database. This week VIX has reached a 28day low at 11.24, close to 10.32, the July low (and the lowest since Feb 2007).

Supporting Charts:
Bonds TLT: pre-open today chart is printing above the Resistance at 117.15 (and just a little below August’s high). Time printed above this Resistance is a positive for this chart (and a negative for equities).
Dollar Index: on Tuesday printed its highest level since July last year.
Gold GLD: pre-open today is printing just below 124.15, the 30mn poc Resistance. This chart has been consolidating for a year now in a contracting type of pattern. I’m looking for a directional move to begin soon.
Oil USO: Lat week printed its lowest level since February and prints just above the Support at 34.17, the 1/2R off 2009 low.
EURUSD: has today printed 1.3153 its lowest level since September. Next Support is at 1.3066, the 3yr poc.