Pre-open Wednesday 25th August
Early in Tuesday’s session I had hopes that by the close I would be marking Significant Buying but in fact the close was to weak to allow that. The last imbalance remains Responsive Selling (red-at-top) on Monday.
1065.25 is the most important level (1/2R off July low). ES is in a weak position below that level.
ST Sentiment: The market was down yesterday and the Rydex Assets Ratio was up. From 1.09 to 1.31. Bull fund assets that I follow were up 13%. Although the ratio is currently low this indicates the Rydex Timers see opportunity and this is not normally ST bullish.
Supporting Charts
– USDJPY: New multi-year low on Tuesday.
– EURUSD: Has stalled at 1.26 (1/2R off June low). Bulls would want to see this support hold. Breaking below this level would indicate further weakness.
– UDX: PriceOsc higher for 12 consecutive days.
– TLT: After breaking out above the 1/2R level at 105.22 last week TLT is surging higher.
imo these charts are not positive for equities.
