posted 9.28 a.m. et
pre-open comment Friday 20th July
Like Wednesday, Thursday generated a higher, narrower Value Area on reduced Volume but no obvious Response yet from the Sellers. As per previous comments, it is worth noting that the 6month VAH comes in just above 1380 (LT VAHs will often stall a rally) and the previous poc at 1366 may be an attractive level for price.
pre-open Key Chart IWM is printing lower towards the obvious poc Support at 79.00. Good chart to monitor today.
First Level S/R = 1366 (poc) SPY = 137.30
First Level Support = 1346 (5mn poc) SPY = N/A
Sentiment: My version of the Rydex Assets Ratio was lower at 3.50 (from 4.16). That’s a 12day low. AAII reported Bulls at 22.2% this week which is an extremely low number and from a contrarian perspective is bullish – more in today’s webcast.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: weaker today and looking like it wants to test the two year low printed a week ago.
? Dollar Index: printed a two year high last week. Pre-open dollar index is printing higher.
? TLT: On Monday chart printed above the June high to a new high. Has been lower since but higher pre-open today.
imo because of the EURUSD chart there is currently a negative bias for equities here.
