posted 9.26 a.m. est
Pre-open Monday 28th June
Long positions are eliminated for me because the ChartProfit Market Timing system (weekly) stayed negative (red) for the eighth consecutive week.
Last week was a “Monday-high-Friday-low” reversal bar with the high of the week on many indices at 1/2R off the April high. That’s a negative technical picture.
Very little time needs to spent at 1073 to cause the 30 day poc to migrate lower to this level (from 1082/83). I’d take that as a further negative and, should it occur, subsequent price action below that level would indicate a test of last week’s low at 1062.75 and most likely a test of the May low at 1032.75. Currently, pre-open, ES prints very close to 1073.
1083 is the First Level Resistance at the start of this week.
Maj poc at 1094 is more important resistance.
I currently favour the short side on all timeframes but the first minor sign of ST strength would be a higher intraday low above 1083 confirmed by a day of Effective Buying.
ST Sentiment: My version of the Rydex Assets Ratio was down from 1.78 to 1.47 on Friday.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: last week broke below the 90.21 poc.
+ EURUSD: printing back above the 1.2133 major halfway level and the Price Osc is increasing.
? UDX: Prints very close today to the 85.14 poc support with Price Osc still falling.
– Last week IEF broke above the maj resistance at 94.00 to a new 12month high.
imo these charts indicate a bearish bias for equities.
