Pre-open Thursday 5th August
Wednesday was another consolidation day and like all this week’s price action it was above the 1107/08 S/R which is a sign of strength.
First Level S/R is 1119 (4day) poc. If ES holds this support then it is likely to probe higher still looking for Responsive Sellers. Maybe a test above 1130 will bring them out.
ST Sentiment: My version of the Rydex Assets Ratio was down on Wednesday to 1.71 from 1.97 which was the highest level for three months. VIX could easily print 3month low if ES shows some strength.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: New low for 2010 this week.
+ EURUSD: New 11wk high on Monday.
+ UDX: dollar index is 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.
