Technical Analysis S&P 500 emini 26th August 2015
Tuesday’s session generated an overlapping/higher but narrower Value Area but late in the day a sharp reversal saw a retest of the 1870 Support. ES has rallied from there and one hour pre-open is printing above 1900.
First ST positives would be Significant Buying marked above 1870 and a higher, wider VA. But, as I wrote yesterday, with momentum and breadth looking so poor I would need to see more than that to consider the long side.
Dayframe: the v min 1/2R off this week’s low is at 1891 and the v min poc (5dy) is at 1889. Price relative these levels will give an idea of intraday strength/weakness for ST traders.
Resistance = 2095.00 (maj poc)
Support = 1870.00 (formerly the maj poc)
Momentum (PriceOsc) remains negative and down for all four Stock Index ETFS.
Stocks>50dyma numbers: Nyse 6% (from 9%), Nasdaq 10% (from 11%), R2000 9% (from 11%). These numbers have historically registered overslod. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.3, the lowest level since October
Supporting Charts:
Bonds TLT: Closed below the 126.69 Resistance (1/2R off this year’s high). Momentum (PriceOsc) although positive has turned lower.
Dollar Index: sold off sharply over last few days and is today printing very close to 94.67, the 12mn poc. Price below this level is weak price location.
Gold GLD: Closed at a 32day high on Monday but was down on Tuesday and today, cash gold indicates GLD will open lower.
Oil USO: closed at a new low on Monday.
EURUSD: is printing above 1.1340 (12mn poc) which is now Support.
