posted 9.29 a.m. est
Pre-open Thursday 22nd July
Responsive Sellers were marked on Wednesday. Both the Significant Buyers and Sellers are active at the moment, see chart, this often happens at the centre of a distribution. I have noted that the 10dy poc has emerged at 1066. In fact this is the centre of the range from the June High to the July Low (see chart bottom left). This level may remain attractive and develop as the poc of that range. However, a day of Effective Buying above 1066 would indicate a drive away from that level and would be ST bullish.
It’s relatively difficult to read the market at the moment. Too many mixed indications which may endorse the ranging market idea, possibly centred around 1066.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 1.16. The Rydex timers stay bearish which, from a contrarian pov, indicates that any downside would be limited at the moment.
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.
