posted 08.54 a.m. est
pre-open comment Thursday 18th July
Price action on Wednesday negated any negative implications of Tuesday’s Responsive Selling as the red-at-top was exceeded, see yesterday’s highlighted comments.
Dayframe: The very minor (6day) poc migrated to 1677.50. This could be intraday Support or Resistance today and price relative to that level may give a clue re ST direction.
1st Level Support = ES 1645.00 (4mn poc)
Stocks>50dyma numbers: Nyse 73%, Nasdaq 79%, R2000 82%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
Sentiment: My version of the Rydex Assets Ratio was lower at 3.29. Tuesday’s ratio at 3.47 was a 16day high but putting that in context, last week the ratio reached 2.15 which was the lowest ratio since January 2012 and indicated real fear from the retail trader.
Supporting Charts
Bonds TLT: w/e 07/05 chart printed its lowest level since Sep 2011. Bounced very little since then. Wednesday printed an 9day high. Momentum, although negative, is up.
Oil USO: now printing above the 1/2R off 2011 high at 37.31. Strong price location if that level holds. Pre-open prints its highest level since May 2012. Momentum is positive and up.
Gold GLD: The low on 06/28 was the lowest since Aug 2010. Momentum (although negative) is up.
Silver SLV: w/e 06/28 chart printed its lowest level since Aug 2010. Momentum (although negative) is up.
Dollar Index: Last week printed its highest level since July 2010 but declined sharply from there and is today printing just above 82.73, the 12mn poc. Momentum, although positive, is down. Dollar Bulls would want to see Momentum turn back and price above 82.73.
EURUSD: Has rallied sharply since testing the maj poc Support at 1.2777 early last week and is currently printing at 1.3075, the 9mn poc. Momentum (although negative) is up.
