Pre-open Wednesday 23rd June
There were two failed price probes above the 20dy poc at 1111 on Tuesday. This rejection was followed by a swift decline to test the 1094 poc support taking out Tuesday’s red-at-bottom low as the stats tell us happens 80% of the time.
First Level S/R today is the Major poc at 1094. ES printing below that level would indicate further weakness and once again the stats suggest yesterday’s red-at-bottom low at 1089.50 will be tested. However, a major poc will often provide serious support so if ES holds above this level or recovers it we have an indication of strength. Longs are eliminated for me on any timeframe.
ST Sentiment: My version of the Rydex Assets Ratio was down from 1.95 (a 30day high) to 1.6.
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: currently printing below the 90.21 poc. Important chart to monitor.
+ EURUSD: now printing back above the 1.2133 major halfway level and the Price Osc is increasing.
? UDX: Found support at the 85.14 poc but Price Osc still falling.
– as long as TLT holds above the 95.22 poc it is in a strong position – price osc is up.
these charts are mixed but USDJPY is testing major support which if broken will indicate a bearish bias for equities.
