pre-open comment Wednesday 4th September
An early probe above the 1644.50 poc was rejected on Tuesday and Responsive Selling (red-at-top) was marked. A higher/overlapping Value Area was generated.
Momentum (although negative) turned up yesterday for the four Stock Index ETFs but this is the only plus factor I can find. I will still be looking for (minimum) Significant Buying marked above ES 1644.50 before considering new long trades especially as the following negatives remain: CP Market Timing System is negative for Nyse and neutral for Nasdaq. Breadth numbers (see below) are below 50%. Price location is generally weak and ES printing below the proven Support at the 1627 poc would suggest further weakness.
Stocks>50dyma numbers: Nyse 38%, Nasdaq 44%, R2000 36%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.29. 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 – *means comment has change
*Bonds TLT: Chart is still in a weak price location below the Resistance at 107.22, the 4mn poc.
*Oil USO: Now printing above both the 1/2R off 2011 high at 37.31 and 37.93 its maj poc in a stronger price location. Momentum is up and positive.
*Gold GLD: Chart is currently holding above 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: Is now printing in a weaker price location below 1.3228, the 1/2R off Feb high. There is Support at the 1.3063 poc.
