posted 9.27 a.m. edt
Pre-open comment Monday 1st August
Longframe: Chartprofit Market Timing System remained negative. %Stocks>50dyma below 50% for all major charts. Breadth is not supportive. Weekly Structure is weak.
Six days ago there was a rejected probe above the LT VAH at 1343 (currently still at this level) and on Friday there was a probe below the LT VAL at 1282. Since then, i.e. overnight, ES has rallied to test the major poc at 1308. Currently prints 1301.
Dayframe: At the start of this week 1308 is clearly the level to monitor. No strength can be anticipated (even on this timeframe) unless ES can print some value above this level.
First Level S/R = 1308 (maj poc)
SPY = 131.23 (1/2R 2011)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 3.02.
Supporting Charts (+ or – or ? for equities).
? EURUSD: prints above the band of maj LT support between 1.3920 to 1.3965 and currently prints at the 1/2R off May high at 1.44.
+ Dollar Index: In a weak position below the 74.96 poc.
? TLT: Late last week probed the major 1/2R at 98.32. TLT consolidating above that level would put it in a strong postion. Currently prints below that level but above the 3yr_poc at 96.28.
imo these charts are mixed and do not have an obvious bias for equities.
