posted 8.15 a.m. est
Pre-open Wednesday 7th July
On Tuesday, following a positive opening, Significant Sellers Responded early in the session and auctioned ES quickly back to the 1023 minor poc. Price action is still weak suggesting the market has not gone low enough to find a convincing response from the Buyers.
Dayframe: Maybe a test down towards 990 will find them. I’ll assume lower unless Effective Buying is marked above 1023.
First Level S/R is the minor (5day) poc at 1023.
ST Sentiment: My version of the Rydex Assets Ratio was lower again – down from 0.93 to 0.86, the lowest level since July 2009. Bear Fund assets that I follow hit their highest level since July 2009. This would suggest a degree of pessimism usually seen at (or close to) a price low of some degree (contrarian).
Supporting Charts (technicals based on daily Price Oscillator)
– USDJPY: new low for the year last week. PriceOsc falling.
+ EURUSD: higher low based on the 1.2133 major halfway level was confirmed by a breakout above the June high. Hourly chart not as positive at the moment with the PriceOsc below zero.
+ UDX: Has broken below the 85.14 poc support.
? TLT. Price Osc turned back up on Tuesday.
imo: these charts are mixed but improving for equities.
