Pre-open comment Wednesday 27th July
note: following was written at 5.30 a.m. edt
The most recent imbalance was Buying (green) and price action since then appears to be Buyers Resting, i.e. Buyers looking for a Response (if any) from the Sellers to gauge.
However, the recent probe above the LT VAH appears to have stalled the rally and as of today the major poc has migrated back up from 1315 to 1328. I will be extremely cautious if ES prints below that level.
Resistance = 1341 (min poc) (133.92 SPY)
First Level S/R = 1328 (maj poc)
Support = 1315 (poc) (131.95 SPY)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly at 3.50, from 3.65 (a 40day high). Also the ISEE (equity-only) index came in at 268, a high number which lifted the 10dyma above 200 for the first time since 3rd May.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: Recently rejected a probe into the band of maj LT support between 1.3920 to 1.3965. Printed a 16dy high today.
+ Dollar Index: In a weak position below the 74.96 poc and printed a 59dy low today.
+ TLT: oscillating around the 3yr_poc at 96.28 since late May. Closed below that level on Tuesday..
imo these charts currently have a positive ST bias for equities.
