posted 9.05 a.m. et
pre-open comment Thursday 30th August
Three days of consolidation with no Significant Buying or Selling marked but enough time has now been spent at 1408.50 to lift the 40dy poc to that level (see yesterday’s highlighted comment) and that is significant. This is now the important ST level to monitor. ES printing time below 1408.50 is now weak price location in the ST. Effective Selling marked below that level would suggest further weakness. Effective Buying marked above that level would suggest further strength.
First Level Resistance = 1408.50 (40dy poc)
Major 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 on Wednesday was unchanged at 4.52. VIX hit a five year low last Friday at 13.3.
Supporting Charts (+ or – or ? for equities). UNCHANGED COMMENTS
(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 early last week and rallied. Momentum is up.
+ Dollar Index: Recently the 6month poc migrated down to 82.52. Chart prints below that level. Momentum is down.
? TLT: Key Chart. This week TLT has auctioned back up to the 5month poc at 125.93 but has not managed to print much time above this Resistance. 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 – watching TLT closely.
