posted 9.29 a.m. est
Pre-open Monday 27th July
Significant Sellers have not appeared for thirteen days now. Friday’s Value Area was narrower (slightly) and overlapping/Lower and that’s the first Value Area with a lower low for two weeks.
Buyers are in control and the Frist Level S/R moves to 973 (pre-open low is 974.5). I await a response from the Significant Sellers before even considering short side.
By most measures the market is overbought. 14dayRSI is above 70 for most major charts and my list of 1700 Nyse stocks shows the percentage of stocks greater than their 50dayMA is above 80% which is very overbought. Their is likely to be a setback at least.
In the main, Sentiment indicators are close to neutral. The exceptions which are flashing a warning are the NasdaqNyse Vol Ratio 10dy_ma which is back above 180 (this is very high and indicates a high level of speculative activity in the market); the VIX which hit a new 10month low on Friday and the Market Vane (advisors) poll which showed the most bullish number (contrarian bearish) since early November.
