posted 08.34 a.m. est
Tuesday’s session generated a higher, narrower Value Area and a new high. First sign of weakness in the ST would be time spent below 1967.50 (minor poc) and in the LT it would be Significant Selling marked below 1949.00 (3mn poc).
ES First Level Support = 1967.50 (min poc)
ES Second Level Support = 1949.00 (3mn poc)
Stock Index ETFs: Key chart IWM found Support last week at the given level of the 2yr poc at 112.30 and has rallied a little. Time below this proven Support would be an indication of further weakness.
Stocks>50dyma numbers: Nyse 58%, Nasdaq 50%, R2000 49%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 8.85, up from previous day’s 7.93, a twenty day low. The highest ratio in my database was on 06/26 at 10.07.
There are still LT concerns for equities re the strength seen in Bonds and Dollar, see below.
Financial Sector XLF: printing above 22.04, its Major 1/2R level in a strong LT price location and above 22.77 (min 1/2R).
EURJPY: chart is printing below 140.96, the 1/2R off Dec high in a weak price location and has today printed its lowest level since early February.
Bonds TLT: in a strong ST price location above 112.27, the 10mn poc and has printed a twelve month high this week.
Dollar Index: sold off in June but found Support at the 79.76 maj poc. LT Dollar bulls would want to see this level hold.
Gold GLD: last week tested up into Resistance at 127.00, the 30mn poc but is still printing below that level in a weak price location.
Oil USO: Closed on Tuesday almost at 37.96, the maj poc. Bulls would want to see a higher low on the chart above that level.
EURUSD: printing below 1.3602 (12mn poc) in a weak price location and has today printed its lowest level since November.
