Pre-open Friday 23rd July
Thursday’s session generated a higher, narrower Value Area on reduced (and below average) volume. Once again the high of the day was a probe into the major poc at 1094. Pre-open today there has been another probe into that level but not above, ES currently prints at 1087.
As I wrote on 14th July “what counts is whether ES is able to print value above 1094.”
LT Sentiment: Investors Intelligence (newsletters) poll reported 35.6% Bears. That’s the highest since May 2009.
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 1.14. The Rydex timers stay bearish which, from a contrarian pov, indicates that any downside would be limited at the moment. In contrast the ISEE (equity only) index came in at 202 which is a high number and shows a relatively high number of Calls being bought compared to Puts.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: This chart still struggling.
? EURUSD: Since the 10wk high on Tuesday this chart has consolidate. Technically overbought and Price Osc fell yesterday.
? UDX: making an effort to rally off the 81.87 support and Price Osc was up yesterday.
– IEF uptrend still intact. Earlier last week the daily chart bounced of the support trendline from April low.
imo Charts are mixed for equities.
