posted 7.10 a.m. est
Pre-open Wednesday 1st September
Monday’s low was tested on Tuesday (as expected) but Buyers Responded below 1040 again (green-at-bottom).
Dayframe: The last imbalance is now Buying (green) and that eliminates new short trades for me. Price Osc was up yesterday for the first time in sixteen days. First sign of ST strength will be if ES can print and hold above 1065.25 the 1/2R off the July low (dotted) which is the First Level Resistance today.
ST Sentiment: My version of the Rydex Assets Ratio was down slightly from 1.12 to 1.04. That’s encouraging for Bulls (contrarian).
Supporting Charts
– USDJPY: New multi-year low last week.
? EURUSD: Has stalled at 1.26 (1/2R off June low). Bulls would want to see this support hold. Price Osc up yesterday for the first time in seventeen days.
? UDX: Price Osc down yesterday for the first time in seventeen days.
– TLT: broke out above the 1/2R level at 105.22 and found fupport here on Friday. Break below would be bullish for equities.
imo these charts are not positive yet for equities.
