Thursday’s sessioin generated the seventh Value Area above 1971.00, the 1/2R off this year’s high and ES must hold this Support to remain in a strong price location. Aggressive Buying (green-at-top) was marked, see yesterday’s comments. The SP500 Pulse Chart looks much more positive and Large Cap charts (SPY, DIA) have moved into stronger price locations. A further positive would be Small Cap (IWM) overcoming the proven Resistance, see below. Breadth numbers are now supportive (see below).
Dayframe: The minor (16day) poc is at 2006.50 This is worth monitoring today for ST traders.
First Level Support = ES 1971.00 (1/2R off this year’s high)
Second Level Support = ES 1923.00 (50dy poc)
Key Support this week: SPY 198.10 = 1/2R off May high; QQQ 105.10 = maj poc; DIA 166.95 = 1/2R off May high.
and Key Resistance: IWM 116.00 = maj poc; FTSE100 6445.50 = 1/2R off April high.
Stocks>50dyma numbers: Nyse 65% (from 56%), Nasdaq 54% (from 44%), R2000 60% (from 49%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 4.9 which is a 30day high. Early last week the ratio recorded 3.09 which was a two year low.
Supporting Charts:
See today’s video.
Bonds TLT: has to hold above the 121.40 Support (12mn poc) to remain in a strong price location and has done that so far this week. Futures indicate a lower open today.
Dollar Index: in September rallied back to the Resistance at 96.50 (1/2R off this year’s high) without overcoming it. Fell last week and today is printing below 94.67, the 12mn poc.
Gold GLD: on Wednesday broke above the August high to its highest level since June.
Oil USO: recently found Support at the 1/2R off August low rallied from there to test the August high on Monday. This was rejected and USO fell sharply from there. The 1/2R Support off the August low is now at 14.28. Futures indicate a lower open.
EURUSD: is today printing above 1.1340 (12mn poc) and must hold this level to maintain a strong price location.
