Bruce's Pre-market Analysis for 7/24/12

The daily chart shows price yesterday opening below the daily and weekly pivots and making a lower high and lower low. Today's candle has again opened below the daily pivot and thus far had an inside day. The MD and MW MAs have turned down and the stochastic has had a definitive bearish cross, indicating Thursday was a multi-week high. That high was one point higher than the prior MW high at the beginning of July; technically a higher MW high means we are on the upside of the MM cycle, but whether it is so close to being a double-top that it indicates the MM cycle has rolled over is a legitimate question that remains open for now. A multi-week low is projected for the week's end, and price would be expected to visit the monthly pivot or MM MA before then.

The hourly chart shows price plunging from Friday morning until the Monday morning 24Hr low. Price then rallied to find its 24Hr high below 24Hr MA resistance. Price has subsequently found resistance at the daily pivot and 24Hr MA, though whether we have seen another 24Hr low/high pairing in the meantime is uncertain. By definition, we have seen another 24Hr low just after the close and only 8 bars after yesterday morning's low and another 24Hr high under daily pivot resistance overnight. These are insanely short cycles (not even half cycles), so I'm uncertain how to treat them. We would normally be expecting a 24Hr low to be put in a little after the NY open, but I am not placing any faith in that and will just let price do what it is going to do and figure out the designations later.  As long as the daily pivot acts as resistance, we are on the downside of the MD cycle which is slightly past due. A MD high is projected for two hours before Wednesday's open. We are currently in the window to see price make a session high as price is again challenging daily pivot resistance.