posted 09.16 a.m.est
See yesterday’s comments highlighted on graphic. ES found Support at 1962.00, the 6mn poc, early in Tuesday’s session. Aggressive Buying (green-at-top) was marked again and ES auctioned above 1970. Significant Selling has not been marked for eleven days now. Key chart IWM rallied above the 111.64 poc and the Breadth numbers improved above 50% (see below).
ES First Level Support = 1962.00 (6mn poc Dec contract)
ES Second Level Support = 1913.75 (1/2R off Sep high) eq SPY = 191.90
ES Major Support = 1872.00 (maj poc) eq SPY = 187.68
Stocks>50dyma numbers: Nyse 54% (from 42%), Nasdaq 53% (from 40%), R2000 64% (from 47%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher again at 8.24, the first time the ratio has been above 8 since 14th October. The ratio is rsing fast indicating the public are moving strongly back into the market. We need to watch this closely.
Supporting Charts: COMMENTS UNCHANGED
Bonds TLT: spiked violently higher recently to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: recently printed a four year high.
Gold GLD: earlier in the month the chart tested the Jan 2014 and June 2013 lows and is up off this proven chart Support. Price below these lows would likely spark another round of selling.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken earlier this month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300
