Technical analysis – Market pre-open 14th September
Mid-week ES probed the 1978.50 1/2R Resistance but price above this level was rejected. The minor Support at 1933.00 subsequently held (see chart) but time printed below this level would be weaker price 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 = 1970.00 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.
Market Charts: All major Mareket Charts remain negative.
Stocks>50dyma numbers: Nyse 19%, Nasdaq 29%, R2000 26%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.68, the lowest level since October 2013. This is a contrarian indicator.
Supporting Charts:
Bonds TLT: found Resistance on 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 last week.
Dollar Index: currently printing very close to 94.67, the 12mn poc. Price below this level would be weak price location. There is Resistance at 96.50 (1/2R off this year’s high) but price above that level 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 is positive and up.
EURUSD: currently printing very close to 1.1340 (12mn poc) which is now Resistance. The minor 1/2R off March low at 1.1083 provided Support recently but price below that level would suggest further weakness.
