pre-open comment Tuesday 17th July
On Monday ES produced a narrower, overlapping Value Area but printed enough time at 1346 to migrate the 5month poc to this level. This is now important to monitor as First Level Support. Price location on most major charts is holding strong; SPY, DIA, IWM, FTSE100 (also Key chart AUDUSD). As of Monday’s Close the following charts were printing below their 1/2R levels QQQ, Nasdaq Comp, Nyse Comp.
First Level Resistance = 1366 (poc) SPY = 137.30
First Level Support = 1346 (5mn poc) SPY = N/A
Second Level Support = 1334.50 (1/2R off March high) SPY = 134.67
Pre-open this week’s Key charts are holding above their Key levels which are therefore Support.
IWM = 78.80 (1/2R off 2012); DIA = 126.66 (1/2R off 2012)
Sentiment: My version of the Rydex Assets Ratio was higher at 4.04 (from 3.69). Last Tuesday’s ratio at 4.40 was a 37day high.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Chart printed a new two year low on Friday.
? Dollar Index: down a little from the two year high printed on Thursday. Weak Close today would see Momentum turn down.
– TLT: On Monday chart printed above the June high to a new high.
imo charts imply a slight negative bias for equities.
