posted 9.28 a.m. est
Pre-open Tuesday 7th September
Last week I marked Significant Selling on Monday followed by three instances of Significant Buying. Friday closed above Mon-Wed range and above the highs of the previous two weeks which usually indicates continuation higher.
Longframe: Long positions are still eliminated for me. The ChartProfit Market Timing System stayed negative for the eightteenth consecutive week.
Dayframe: Last imbalance was Buying (green). Pre-open today ES has printed up to 1105.75 which is just below resistance at 1107 (1/2R off the April high) and as low as 1095 which is just above the Major poc at 1094 . ST direction will probably be signalled by either ES breaking above that resistance or below that support.
Sentiment: Consensus Polls indicate lots of Bears which is LT bullish (contrarian).
My version of the Rydex Assets Ratio remained low at close Friday at 1.02. This is encouraging. The Rydex Timers do not trust the rally.
Supporting Charts
– USDJPY: New multi-year low today.
+ EURUSD: Price Osc is up as this chart rallies off the 1.26 support (1/2R off June low). Bulls need to see this support hold.
? UDX: Momentum is down (PriceOsc). If support at 81.80 (1/2R off Aug low) is broken next support is the major level at 80.15
+ TLT: has broken below the major 1/2R level at 105.22
imo these charts currently have a positive bias for equities.
