posted 9.28 a.m. est
Pre-open comment Wednesday 13th July
Tuesday’s day session was supported by the 1/2R off May high at 1310 but there was certainly no obvious Response from the Buyers at that level. If ES breaks that 1/2R and prints time below it I will expect further weakness. Other key levels are SPY=131.68; XLK=25.80; UK FTSE100 index=5849; and the Supporting Charts levels shown below.
I’m unhappy if ES remains below 1327 because:
1 The maj poc could migrate lower as discussed in yesterday’s webcast.
2 If there were to be weakness to the end of this week the CP Market Timing System may well turn back to negative.
3 Retail Money came swiftly back into equities since the June low (contrarian).
4 Currently we have a high y.t.d. for the SP500 which came in May. That fits well with the decennial pattern of weakness for the second half of a “1” year.
1st Level S/R = 1310 (1/2R off May high) (131.68 SPY)
2nd Level Resistance = 1327 (maj poc) (132.18 SPY)
Sentiment: My version of the Rydex Assets Ratio almost unchanged at 3.50.
Supporting Charts (+ or – or ? for equities).
? EURUSD: printed a 4month low on Tuesday and tested the band of maj LT support between 1.3920 to 1.3965. Currently prints above that support but momentum is down again.
? Dollar Index: printed a 4month high on Tuesday. Currently prints at the 75.65 poc.
– TLT: Chart currently prints above the 3yr_poc at 96.28. If Chart can print some time above this level it would indicate higher.
imo these charts are currently mixed but that could shift very quickly to an obviously negative bias for equities.
