Pre-open Thursday 2nd September
Aggressive Buyers were marked on Wednesday auctioning ES above the poc at 1073 which now becomes First Level Support. I expect higher prices if this support holds.
There is a gap between the day sessions and the Value Area was narrower but as it printed entirely above 1073 I’ll take Wednesday’s price action as a positive sign of strength.
Dayframe: Things go wrong for the Bulls in the ST if 1065.25 (1/2R off the July low) fails to provide support if tested.
I use the %Stocks>50dyma indicator as a confirming measure of internal strength and like to see the number above 50. NYSE made it yesterday at 52%; Nasdaq came in at 40%.
ST Sentiment: My version of the Rydex Assets Ratio was up only slightly from 1.04 to 1.17 which is encouraging for Bulls (contrarian).
Supporting Charts
– USDJPY: New multi-year low last week.
? EURUSD: Price Osc is up as this chart rallies off the 1.26 support (1/2R off June low).
? UDX: Momentum is down (PriceOsc). If support at 81.80 (1/2R off Aug low) next support is the major level at 80.15
? TLT: currently prints below the major 1/2R level at 105.22 Value printed below 105.22 would be bullish for equities.
imo these charts are moving towards a positive bias for equities.
