posted 9.26 a.m. est
Pre-open Monday 2nd August
Following the Selling marked on Wednesday and Thursday last week I said (pre-open Friday).. “we now need very strong evidence before looking at the long side. An early response from the Buyers in today’s session and some value (time) being printed back above the major poc at 1094 would be a start”
We did get an early response from the Buyers, off the open on Friday. Significant Buyers Responded (green-at-bottom) and auctioned ES back up to the area around 1108 which as I have said may be a “sticky level and attract time. imo that would be bullish”. I think that is still the case.
Longframe: CP Market Timing System stayed negative for the 13th consecutive week.
Dayframe: 1108 is now the 6dypoc. I’m using that as First Level S/R at the start of this week. As long as ES prints above this level then 1123 stays target as it was at the start of last week.
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged on Friday at 1.46.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: New low for 2010 last week.
+ EURUSD: New 11wk high today. My target 1.3240
+ UDX: The 81.87 support was broken last week. That put UDX in a weak price location. Next obvious support is 80.15 the 1/2R off the March08 low.
– IEF: the chart has a pattern of higher highs and higher lows and this is still intact.
imo the influence of these charts for equities is too mixed to be useful at the moment.
