posted 09.23 a.m. est
pre-open comment Wednesday 28th August
The high of Tuesday’s session came in at the 6mn poc at 1644.50. Aggressive Selling was marked later in the day for the second time this week and this time below that poc . This is weak price location. With the LT analysis still negative I am cautious here. Sellers are in control of the dayframe and at current levels Significant Buying would need to be marked above 1644.50 for me to consider new long trades. Breadth has deteriorated again, see below.
SPY: Pre-open today, SPY is printing 163.30, below the 4mn poc at 164.90, this is weak location.
Stocks>50dyma numbers: Nyse 39% (from 53%), Nasdaq 43% (from 58%), R2000 38% (from 54%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.20 which is a 23day low. 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 last week.
Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in much stronger price location.
Gold GLD: Chart is now printing above the Resistance at 134.17, the 12mn poc. This is stronger price location.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
EURUSD: Prints above the Support band between the 4mn poc at 1.3257 and the 1/2R at 1.3228 but yet to overcame Resistance at 1.3418, the 1/2R of 2010 low.
