posted 7a.m. edt
Pre-open comment Monday 29th August
Chartprofit MarketTiming System remains negative for all major Market Charts but the %Stocks>50dyma indicator for both Nyse and Nasdaq is still extremely low deep in oversold territory.
Weekly Structure: w/e 5th Aug was an Effective Selling week. Since then we have seen three week’s of lower/ranging price action. Although Buyers were active last week price action was once again overlapping.
Last week I marked four instances of Significant Buying and one instance of Significant Selling. First Level Support was tested on Friday but only for one minute and it brought about an immediate Response from the Buyers.
Most recent imbalance is now Buying (green) – if ES does progress higher early this week, the 20dayVAH at 1194 (dotted) may be a problem unless/until the STpoc at 1134 migrates higher.
In summary, market is oversold just above critical Support (see eBook) with Sentiment too Bearish (i.e. suggesting limited downside). However if those Support levels are broken the market could decline quickly again.
First Level Support = 1134 (30dy poc) (SPY = 114.25)
Major Support = 1094 (MAJ LT poc) (SPY = 109.38)
Supporting Charts (+ or – or ? for equities).
+ EURUSD: prints above the band of maj LT support between 1.3920 to 1.3965 and currently above the 1/2R off May high at 1.44.
+ Dollar Index: Currently printing below the 74.96 poc.
– TLT: printing above the major 1/2R off the 2008 high at 105.22.
imo it is difficult to imply a bias for equities in the ST from these charts.
