Pre-open Wednesday 8th September
Dayframe: Most recent imbalance is now Selling (red) and therefore a test of Tuesday’s low is likely during today’s session.
ES spent most time on Tuesday printing at the Major poc at 1094. Printing close to a major poc like this makes a directional call difficult. Longframe and Dayframe point down and we should respect that but yesterday’s Selling was not Effective (lower, narrower Value Area and less volume). Bears should wait for Effective Selling, Bulls will be hoping that ES can break above the First Level Resistance at 1107 (1/2R off the April high).
LT Sentiment: Indicates downside is limited.
ST Sentiment: My version of the Rydex Assets Ratio was up from 1.02 to 1.24. Still low.
Supporting Charts
– USDJPY: New multi-year low again today.
+ EURUSD: Price Osc is up as this chart rallies off the 1.26 support (1/2R off June low). Bulls need to see this support hold.
? UDX: Momentum is down (PriceOsc). If support at 81.80 (1/2R off Aug low) is broken next support is the major level at 80.15
? TLT: slightly surprisingly (to me) TLT quickly recovered back above the major 1/2R level at 105.22 but PriceOsc is heading down.
imo these charts are very mixed for equities. Need these to line up a little more one way or the other.
