Technical Analysis – Market pre-open 10th September 2015
See previous, highlighted, comments on graphic. On Wednesday, ES opened above the 1978.50 1/2R Resistance but price was rejecetd above this level and sold-off to close just above the minor Support at 1933.00, which has been probed pre-open today. Time printed below 1933.00 is weaker location and Significant Selling marked below that level would indicate further weakness.
Major Resistance = 1978.50 (1/2R off this year’s high)
minor Resistance = 1973.00 dashed (minor VAH)
Major Support = 1870.00 (formerly the maj poc)
minor Support = 1933.00 (min poc)
ETFs: Important Resistance levels to watch this week (see eBook) = SPY 198.10; IWM 116.00; DIA 166.95. Price above these levels would be much stronger location.
Stocks>50dyma numbers: Nyse 16% (from 20%), Nasdaq 25% (from 28%), R2000 22% (from 25%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 4.31 and this is the lowest ratio since October 2013. This is a contrarian indicator.
Supporting Charts:
Bonds TLT: found Resistance 08/24 at 126.69 (1/2R off this year’s high) and sold off. Momentum (PriceOsc) is negative and down. Printed a 33day low on Wednesday.
Dollar Index: printing above 94.67, the 12mn poc. Price below this level is weak price location. There is Resistance at 96.50 (1/2R off this year’s high) and for 10days the chart has been consolidating just below that level which can be a weak pattern. Price above 96.50 would be stronger location.
Gold GLD: chart rallied into mid August but has retraced from there. Price is now printing below 107.78, the 1/2R off July low, which is weak price location. Momentum has turned negative.
Oil USO: printed a new low on 08/24 and then rallied very strongly from there to its highest level since late July. Momentum has been up and has just turned positive.
EURUSD: recently moved to a weaker LT price location below 1.1340 (12mn poc) which is now Resistance. The minor 1/2R off March low at 1.1083 provided Support last week but price below that level would suggest further weakness.
