posted 9.22 a.m. et
pre-open comment Monday 16th July
On Friday ES Opened just below the 1/2R at 1334.50 and immediately rallied above it. Aggressive Buying was marked later in the day with ES closing strongly. The Value Area was higher although on less Volume. Short Trades are now eliminated for me at least until Significant Selling is marked again.
The %Stocks>50dyma numbers for all Major Market Charts held above 50 during last week’s decline, which is supportive. The Chartprofit Market Timing System turned neutral (from positive) for Nyse, stayed neutral for Nasdaq and turned neutral (from positive) for UK. Friday Closed within Mon to Wed Hi-Lo Range so there is no bias indicated on this timeframe. Equities, bonds and the dollar are all higher than they were late June which is stretching the relative relationships we have seen over the last few years.
First Level Resistance = 1366 (poc) 137.30 (SPY)
First Level Support = 1334.50 (1/2R off March high) SPY = 134.67
Other Key Chart levels this week: Pre-open the following charts are printing above their Key levels which are therefore Support.
IWM = 78.80 (1/2R off 2012); DIA = 126.66 (1/2R off 2012)
Sentiment: My version of the Rydex Assets Ratio finished the week at 3.69. Tuesday’s ratio at 4.40 was a 37day high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Chart printed a new two year low on Friday.
– Dollar Index: a new two year high was printed on Thursday and pre-open today chart prints just below that level.
– TLT: pre-open TLT has printed above the June high to a new high.
imo charts imply a negative bias for equities.
