pre-open comment Monday 20th August
Last week I marked Significant Buying three times and no Significant Selling. Friday’s Close was above the high of Mon-Wed Range so this is Buyers Active on this timeframe. Currently the first indication of weakness would only occur if Significant Selling is marked below the First Level Support at 1398.50. The extremely low reading in the VIX is worrying more than a few analysts (see below) with others very confused by it.
The Chartprofit Market Timing System is now positive for all Major Market Charts.
First Level Support = 1398.50 (25dy poc)
Second Level Support = 1348 (6mn poc)
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.15. The ratio reached a 54day high on 31st July at 4.51.
VIX hit a five year low on Friday at 13.3
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Key chart. Last week the 6month poc migrated lower to 1.2285. Pre-open today the chart prints just above that level. Price below that level is weak location.
? Dollar Index: Last week the 6month poc migrated down to 82.52. Pre-open the chart prints just above that level.
+ TLT: The chart currently prints below the 5month poc at 125.93 which is weak price location.
imo these charts have a slight positive bias for equities. Watching support on the EURUSD chart closely.
