posted 5.25 a.m. est
Pre-open Tuesday 3rd August
Monday’s session was above the First Level S/R at 1108. 1123 target was reached. ES gapped higher on Monday.
I have marked no Significant Selling and most indices now print above their 1/2R off the April high levels which put them in a strong position.
If Responsive Sellers are marked today/tomorrow then the market could well set back here to maybe print some time around 1108 but apart from the fact that the market is ST technically overbought and my target at 1123 has been reached I have nothing reliable to indicate the market will stall here.
ST Sentiment: My version of the Rydex Assets Ratio was up slightly on Monday to 1.53 (from 1.46). That’s the highest level since 24th June but still indicates a lack of enthusiasm from the Rydex timers (back in April the ratio was above 3) which is not bearish. However, VIX printed its lowest level on Monday since early May which indicates complacency and may be a problem.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: New low for 2010 today.
+ EURUSD: New 11wk high today. My target 1.3240 has been reached.
+ UDX: The 81.87 support was broken last week. That put UDX in a weak price location. Next obvious support is 80.15 the 1/2R off the March08 low.
– IEF: the chart has a pattern of higher highs and higher lows and this is still intact.
imo the influence of these charts for equities is too mixed to be useful at the moment.
