posted 9.28 a.m. edt
Pre-open comment Wednesday 6th July
ES generated a very narrow Value Area on Tuesday on low volume but the entire VA was above the 1327 maj poc which is the major level of Support (and possible Resistance). As noted, the VAH measured over various timeframes comes in at 1339 and with the market technically overbought ES may (at least) stall here (overnight high was 1340.75). Short Trades still eliminated for me but Significant Selling marked below 1327 would change that. Note that Sentiment indicators (see below) show Bulls emerging again.
1st Level S/R = 1327 (maj poc) (132.18 SPY)
2nd Level Support = 1310 (1/2R off May high) (131.68 SPY)
2nd Level Resistance = 1339 (LT VAH) (134.80 SPY)
ST Sentiment: My version of the Rydex Assets Ratio was sharply higher on Tuesday, to 3.03 (from 2.00). Bear Fund assets that I follow were down 22% and Bull Fund assets up 11%.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Five day low today. Chart currently printing below the 1.445 Resistance (1/2R off May high). Momentum (PriceOsc) is up.
? Dollar Index: Chart currently printing above the 74.53 Support (1/2R off May low). Momentum (PriceOsc) is down.
? TLT: Chart printed a 40day low last week. Momentum (PriceOsc) is down. Support at 92.94 (1/2R off Feb low).
imo it is currently difficult to imply a bias for equities from these charts.
