pre-open comment Wednesday 27th June
Aggressive Buyers were active on Tuesday generating a higher/wider Value Area. On the longer timeframe this can be viewed as Responsive Activity because both Value Areas this week have been generated below last week’s low. So I need to see more convincing/Effective Buying activity than this before assuming higher on any timeframe. Effective Buying above 1314.50 (50dypoc) would be a positive. Note that we have yet to see a Value Area printed below the Major poc at 1307; Significant Selling marked below that level would indicate lower.
Key Charts/Levels: Pre-open SPY prints above its Key Level at 131.93 and so far this week QQQ has held its Key Support at 62.10.
Resistance = 1334.50 (1/2R) SPY = 134.67
First Level S/R = 1314.50 (50dypoc)
Key Level = 1307 (maj poc) SPY = 131.93
My version of the Rydex Assets Ratio was slightly lower at 3.0 (from 3.21). On 5th June the ratio reached 2.25 which was a four month low coinciding with the recent market low. The ratio below 2.25 or above 3.70 would give us useful information.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
– EURUSD: Chart printing below the Major poc at 1.2777 and currently prints below the Minor poc at 1.2570. Momentum has turned down.
– Dollar Index: Prints well above the important level at 80.15. Minor level to watch is the 1/2R off June high at 82.36; pre-open chart prints above that level. Momentum has turned up.
? TLT: momentum is down. Chart found Resistance late last week at 127.23, the Minor 1/2R off June high.
imo these charts imply a slight negative bias for equities.
