Wednesday 7th August 2019
Overnight the 15mn Resistance at 2887 was tested and quickly rejected. back to 2845, see yesterday’s comments. Tuesday’s Value Area was not generated convincingly higher than Tuesday’s. Last imbalance was Selling so I’m not considering the long side until Significant Buying (green) is marked above 2887 and Breadth numbers improve
Stocks>50dyma numbers: Nyse 35% (from 28%), Nasdaq 38% (from 33%), R2000 39% (from 32%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 19.15. Down from 24.14 on 07/29, a 10month high.
Bonds – TLT: 07/31 TLT spiked above 132.80, the maj Value Area High and closed on Tuesday at its highest level since September 2016.
Dollar Index: w/e 06/14 the three year poc migrated to 97.00 – now Support. Last week DXY printed a two year high but retraced from there. Major VAH at 99.50.
Gold: Cash Gold has today printed its highest level since early 2013. GLD Resistance 143.0, the 1/2R off 2011 high.
Oil: USO – closed on Tuesday below 11.41, the major poc Support, Risk-off.
GBPUSD: The 1/2R off this year’s low at 1.2910, was broken in mid-May and chart fell sharply from there. In July the chart broke below 1.2481, the 30mn poc, and on Thursday printed its lowest level since Jan 2017.
EURUSD: in early July the chart broke back below 1.1310, the Major poc which put EURUSD back in a weaker position and last week printed its lowest level since May 2017. Has rallied back from there.
USDJPY: the major poc is at 112.65. Chart is currently in a weak position below that level.
