posted 9.29 a.m. est
Pre-open Wednesday 21st July
A probe down into the support zone 1050/1051 (mentioned pre-open Monday) found a Response from the Buyers (green-at-bottom). In fact about an hour before open yesterday there was a price probe down to 1050.75, exactly within that support. Significant Buyers were active again later in the day (green-at-top) Aggressively auctioning ES higher.
Pre-open today ES has printed as high as 1087.75 pushing up towards the Major poc at 1094 which is now potential resistance. A further sign of strength for ES would now be consolidation above that level.
Long trades are now permitted for me and Short trades eliminated because the most recent imbalance is Buying (green). Long positions are still eliminated.
First Level Support today is the 10dyPoc at 1066.
Sentiment: My version of the Rydex Assets Ratio was up slightly from 1.10 to 1.18 but this is still a low number suggesting the Rydex timers are slow to embrace the rally off the July low.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: This chart still struggling.
+ EURUSD: new 10wk high on Tuesday but off from there. Technically overbought.
+ UDX: making an effort to rally off the 81.87 support but still a weak chart.
– IEF uptrend still intact. Earlier last week the daily chart bounced of the support trendline from April low.
imo Charts are mixed for equities.
