posted 9.21 a.m. et
pre-open comment Monday 9th July
Longframe: The %Stocks>50dyma numbers for all Major Market Charts stayed well above 50 which is supportive. The Chartprofit Market Timing System stayed positive for Nyse, stayed neutral for Nasdaq and turned positive for UK. As I wrote last Monday, “the LT analysis is now much more positive…Previous poc level at 1366 comes back into play as First Level Resistance”.
Last week I marked Significant Buying once and no Significant Selling. ES printed up to test the poc Resistance at 1366 and has not yet managed to print any Value above that level (see chart). I have not marked Significant Selling for ten days. A number of major charts have been technically overbought and this would be a good time for the Buyers to see what the Sellers can do.
KEY CHARTS: On Friday, and so far pre-Open SPY has held First Level Support at 134.67 (1/2R). This is Key Chart Level at the start of this week. TLT is also a Key Chart at the start of the week (see below).
First Level Resistance = 1366 (poc) 137.30 (SPY)
First Level Support = 1334.50 (1/2R) SPY = 134.67
My version of the Rydex Assets Ratio finished the week at 3.77. Thursday’s ratio at 3.87 was a 32day high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: On Friday chart broke below the June low (which was a two year low). This chart has been in a weak price location for weeks and this new low is a negative for equities. Minor strength would be indicated only if chart can print back above the minor poc at 1.2496.
– Dollar Index: currently threatening the June high.
? TLT: Key Chart. pre-open chart has printed back above the Minor 1/2R off June high at 127.23 and prints very close to that level now. That’s ST stronger price location if it holds.
mixed but imo charts imply a negative bias for equities.
