Technical analysis S&P 500 emini pre-open 4th September
Dayframe: Early in Thursday’s session there was a push higher towards the Resistance (1977/78) but this failed and overnight ES sold back to the minor (20dy poc) at 2032.00. Pre-open ES has printed as low as 1910.50, which was a probe below the 1/2R off August low (1912.00). Therefore 2032.00 is minor Resistance today and 1912.00 is minor Support.
Breadth and price momentum still need to improve to be supportive but yesterday’s Sentiment (see below) suggests Bears are emaerging fast.
Major Resistance = 1978.50 dashed (1/2R off this year’s high)
minor Resistance = 1932.00 (20dy poc)
Major Support = 1870.00 (formerly the maj poc)
minor Support = 1912.00 (1/2R off recent low)
Stocks>50dyma numbers: Nyse 16% (from 14%), Nasdaq 22% (from 21%), R2000 22% (from 20%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 4.23 which is the lowest level since October 2013. This is a contrarian indicators.
Supporting Charts: In today’s webcast
