posted 5a.m. et
pre-open comment Wednesday 5th September
Note: this was posted at 5a.m.
Tuesday’s session high was 1408.25 – just below yesterday’s First Level resistance at 1408.50 (see chart). This was the sixth day where no Significant Buying or Selling has been marked. That’s unusual and I would expect to mark one or the other soon. Measuring the Value Area of the period from early August (start of the current consolidation) I note that the VAH comes in at 1412.50 and the VAL at 1395 (both dotted). You can see from the chart that these levels cap recent activity very clearly. This is a market looking for the next impetus and direction will likely to be flagged by Aggressive Buying marked above or Aggressive Selling marked below these levels driving price away from Value.
First Level Resistance = 1408.50 (poc)
First Level Support = 1398.50 (poc)
Sentiment: My version of the Rydex Assets Ratio was higher on Tuesday to 4.88 (from 4.80). Recent high was 5.13 ON 08/21 which was the highest level since 3rd May. VIX hit a five year low at 13.3 on 08/17 – closed Friday at 17.47.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
+ EURUSD: w/e 17th Aug the 6month poc migrated lower to 1.2285. Chart held that level early last week and rallied. Chart printed a two month high last week.
+ Dollar Index: Recently the 6month poc migrated down to 82.52. Chart prints below that level.
– TLT: Key Chart. the 5month poc migrated to 125.93 in August and the chart recovered back above that level last week which puts it in a stronger price location. Price back below that level would be weak location.
imo it is difficult to imply a bias for equities from these charts.
