posted 8.55 a.m. et
pre-open comment Friday 17th August
Buyers Responded (green-at-bottom) again on Thursday at the slightest opportunity which was a probe below Wednesday’s Value Area. Later in the day I marked Aggressive Buying (green-at-top). Sellers had an opportunity for eight days within this higher range to make a mark and they did not appear.
Currently the first indication of weakness would only occur if Significant Selling is marked below the First Level Support at 1398.50.
First Level Support = 1398.50 (25dy poc)
Second Level Support = 1348 (6mn poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 4.15 (from 4.50) on an up day for the market. The ratio reached 4.51 on July 31st which was the highest level since mid-May and is the reference level now. Ratio above that level would likley indicate over-optimism.
VIX low Monday was 13.67. Below 13.66 would be a multi year low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Key chart. The 6month poc migrated lower to 1.2285. Pre-open the chart prints above that level which is relatively strong price location (obviously price below that level would be weak price location).
+ Dollar Index: The 6month poc migrated down to 82.52. Pre-open the chart prints below that level which is weak price location.
+ TLT: The 5month poc migrated to 125.93 last week. The chart currently prints below that level which is weak price location.
imo these charts have a positive bias for equities.
