Pre-open comment Friday 22nd July
Note that 1327 marked the high during Wednesday’s session and the low in Thursday’s session – see chart. Clearly an important S/R Level to monitor.
This week Buyers have Aggressively auctioned ES higher to prober the LT VAH which currently comes in at 1341 – the VAH being measured over the entire Range for the year to date. The poc for this distribution is currently at 1315.
Bullish: ES holds above 1327 or stalls here to print enough time at 1327 to lift the major poc back to this level (and therefore lifting the VAH higher).
Bearish: This probe above 1341 is quickly rejected, followed by Significant Selling below 1315.
First Level S/R = 1327 (prev poc) (132.18 SPY)
Support = 1315 (maj poc) (131.95 SPY)
Sentiment: My version of the Rydex Assets Ratio was down slightly to 3.37 (from 3.60). However, the ISEE (equity-only) index came in at 273 which is the highest single reading for nearly two months. The AAII (public poll) numbers showed very little change.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Recently rejected a probe into the band of maj LT support between 1.3920 to 1.3965. Printed a 12dy high on Thursday.
+ Dollar Index: In a weak position below the 74.96 poc and printed a 29dy low on Thursday.
+ TLT: prints below the 3yr_poc at 96.28.
imo these charts currently have a positive ST bias for equities.
