posted 08.30 a.m. et
pre-open comment Monday 27th August
Weekly Structure: Friday’s Close was within Mon-Wed Range so there is no bias on this timeframe.
The Chartprofit Market Timing System remained positive for all three Major Market Charts. %Stocks>50dyma numbers: Nyse = 72; Nasdaq = 55.
Last week I marked Significant Selling three times and Significant Buying once.
On Friday there was an early test below the poc at 1398.50 which was quickly rejected with Agressive Buying being marked later in the session. New short trades eliminated for me at least until Significant Selling is marked again.
First Level Support = 1398.50 (25dy poc)
Second Level Support = 1348 (6mn poc)
Sentiment: My version of the Rydex Assets Ratio spiked higher to 5.13 last Tuesday which is the highest level since 3rd May. Ratio ended the week at 4.32. VIX hit a five year low last Friday at 13.3
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: w/e 17th Aug the 6month poc migrated lower to 1.2285. I said in last week’s eBook that Bulls would want that level to hold as Support. Chart held that level on Monday and rallied. Price below that level is weak location.
+ Dollar Index: Recently the 6month poc migrated down to 82.52. Chart prints below that level.
? TLT: Key Chart. Chart has auctioned back up to the 5month poc at 125.93. One hour pre-open chart prints below that level. Does TLT find Resistance here which may mark a lower high on the chart or can it print time above 125.93 which would be a positive for this chart and most likely a negative for equities?
imo these charts “should” have a slight positive bias for equities.
