Bruce's Pre-market Analysis for 7/26/12

The daily chart shows price yesterday opening below the daily pivot and making a lower low but finding support on the monthly pivot and closing above the daily pivot. Price today has opened above the daily pivot and made a higher low and higher high. Price has thus far eclipsed the MD and MW MAs and is approaching the weekly pivot. This behavior indicates we are on the upside of the MD cycle; how price reacts to the weekly pivot will let us know where we are in the multi-week and multi-month cycles. It is possible that the monthly pivot and MM MA have turned the MW cycle early, indicating we are still on the upside of the MM cycle and are now on the upside of the MW cycle; it is also possible that we are merely on the upside of the MD cycle and price will resume its search for a MW low. Price behavior in the next day or two should tell us which scenario is unfolding.

  

The hourly chart shows price yesterday with a double-topping gyration around the daily pivot but with 24Hr MA support to form a 24Hr high, then a break of the 24Hr MA to form what appears to be a 24Hr low several hours ago. Price has since surged up and taken out the MD and MW MAs this morning. The higher 24Hr low confirms we are on the upside of the MD cycle. We are past due to see a MD high, and the 24Hr high is projected for around the close of today's regular session. We are currently in the timeframe for a session high to be seen, and a session low is projected for 10:15am Central.