On Monday SPY (S&P500 ETF) exceeded its April and November highs to close at the highest level since July last year.
The strength in SPY was also seen in ES which generated a higher Value Area, above the range of the last seven days. First Level ES Support can be moved to 2093.50, the very minor Time Support which is the 15day poc. Price below that level would only be a sign of weakness in the ST. Significant Selling has not been marked for thirteen days. Pre-open today ES has printed as high as 2116.25 which is close to the target of 2120, see previous highlighted comments.
First Level Support = 2093.50 (15day TS)
Second Level Support = 2054.50 (maj poc)
Stocks>50dyma numbers: Nyse 70% (from 66%), Nasdaq 67% (from 63%), R2000 71% (from 66%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 4.07. On 04/26 the ratio reached 5.27 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: On Thursday TLT closed back above 130.77, the 8mn poc, in a stronger price location, and on Friday gapped higher to close at its highest level since early February.
Dollar Index: Had a very weak day on Friday following the jobs data. The Support is at 93.95 and the is the 1/2R off the May low. Chart is currently printing almost exactly at that level but time printed below that Support would put it in a weak position and suggest lower.
Gold: GLD – last week the chart held 115.50 which was previously the major poc and also the April low. On Friday chart gapped higher and on Monday closed above 118.22, the maj poc, in a strong price location. Cash indicates a lower open today.
Oil: Last week USO printed its highest level since December and today Oil Futures have reached the highest level since October.
EURUSD: Recently held the Support at 1.1084, the 1/2R off last year’s low and had a strong day on Friday finishing the week above 1.1198, the 3yr poc. Maintains that strong position today.
click graphic to enlarge
