pre-open comment Wednesday 25th July
On Tuesday I marked Aggressive Selling (red-at-bottom). A lower, wider VA was generated on increased Volume. Pre-open ES prints back above the 1/2R at 1334.50 but other major charts print below their equivalent levels, e.g. IWM, QQQ, UK Ftse100. Long trades are still eliminated for me, at least until Significant Buying is marked again (and preferably above 1334.50). See previous highlighted comments on the graphic.
First Level Resistance = 1348 (5mn poc)
First Level S/R = 1334.50 (1/2R off March high) SPY=134.67 (1/2R)
First Level Support = 1315.50 (1/2R off June low) SPY = 132.84 (4mn poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 4.27 (from 3.56). That’s quite a jump in optimism from the Rydex traders on a down day for the market. It appears they are trying to “buy the dip” which is not usually bullish in the ST (contrarian).
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: new two year low on Tuesday.
– Dollar Index: new two year high on Tuesday.
– TLT: new high on Tuesday.
imo these charts have a negative bias for equities.
