pre-open comment Tuesday 3rd July
Monday produced a higher/overlapping (but narrower) Value Area generating less Volume. There was Selling soon after the Open as ES printed above 1360 but this was retraced in the pm. With the VIX at a 2month low and the market at a 35dy high it would be healthy to see some consolidation but Buyers are in control.
Re the Key Charts and Levels given in this weeks eBook. SPY, IWM and FTSE100 are printing above their Key levels. QQQ, XLF and AUDUSD are attempting to print above their Key levels today – which would be a further positive .
First Level Resistance = 1366 (poc) 137.30 (SPY)
First Level Support = 1334.50 (1/2R) SPY = 134.67
Major Support = 1307 (maj poc) SPY = 131.93
My version of the Rydex Assets Ratio was slightly higher at 3.40 (from 3.12). On 5th June the ratio reached 2.25 which was a four month low coinciding with the recent market low. It’s also worth noting that the VIX printed a 2month low at 16.66. It had been above 27 in early June at the market low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Prints above the minor poc at 1.2496 (First Level Support) and below the maj poc at 1.2777 (Resistance).
? Dollar Index: prints above the Major Support at 80.15 but in an ST weak price location below 82.36, the 1/2R off June high.
+ TLT: found Resistance again on Monday at the Minor 1/2R off June high at 127.23 which is ST weak price location. View of this chart could change quickly if this level is exceeded.
imo these charts now imply a slight positive bias for equities.
