pre-open comment Wednesday 29th August
Tuesday generated a narrow overlapping Value Area with no Significant Buying/Selling. Therefore there is little to add to previous comment (highlighted). 1408.50 is the level attracting time since the price high on 08/21. It is possible (with more time) that the 40dy poc could migrate up to this level from 1398.50 – that would be interesting.
First Level Support = 1398.50 (40dy poc)
Second Level Support = 1348 (6mn poc)
Sentiment: My version of the Rydex Assets Ratio spiked higher to 5.13 last Tuesday which is the highest level since 3rd May. Ratio on Tuesday was slightly lower at 4.52. VIX hit a five year low last Friday at 13.3.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: w/e 17th Aug the 6month poc migrated lower to 1.2285. I said in last week’s eBook that Bulls would want that level to hold as Support. Chart held that level early last week and rallied. Momentum is up.
+ Dollar Index: Recently the 6month poc migrated down to 82.52. Chart prints below that level. Momentum is down.
? TLT: Key Chart. This week TLT has auctioned back up to the 5month poc at 125.93 but has not managed to print much time above this Resistance. Does TLT find Resistance here which may mark a lower high on the chart or can it print time above 125.93 which would be a positive for this chart and most likely a negative for equities?
imo these charts “should” have a slight positive bias for equities – watching TLT closely.
