pre-open comment Tuesday 24th July
ES was much weaker at the Session Open on Monday but found Support at the First Level which was the 1/2R at 1334.50. Therefore this chart is not yet in a weakened price location i.m.o. (SPY recovered its 1/2R by the Close). Other charts are printing weaker below their 1/2R, e.g. IWM, QQQ, UK Ftse100. An encouraging sign of strength in the dayframe would be Significant Buying above ES 1334.50.
The %Stocks>50dyma number for Nasdaq is now <50 which shows the relative weakness to Nyse which held >50 (as reported, Chartprofit Market Timing System turned negative for Nasdaq last week).
Resistance = 1366 (poc)
First Level S/R = 1348 (5mn poc)
First Level Support = 1334.50 (1/2R off March high) SPY=134.67 (1/2R)
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.56 (from 3.57). That’s a 14day low but certainly no panic registering here. Sentiment is very mixed as discussed; the AAII (public) poll showing nearly twice as many Bears as Bulls which is usually Bullish (contrarian) and the NAAIM number (money-managers) at a fifteen week high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: new two year low on Monday.
– Dollar Index: new two year high on Monday.
– TLT: new high on Monday.
imo these charts have a negative bias for equities.
