Technical analysis – Market pre-open 30th October 2015
See yesterday’s highlighted comments. Thursday’s session generated a higher, narrower value Area on below average Volume. So far these higher levels have not brought a reaction from the Significant Sellers who have not been marked for eleven days. The poc at 2095.00 comes back into play here as Resistance. We were monitoring this level from May until the sell-off in August. The ST Support to monitor is 2063.00 and ES needs to hold this level to remain in a ST strong price location.
This week’s Key Charts: SmallCaps (IWM) closed above 115.35, its key level. UK FTSE100 was rejected again at its important level of 6445.50.
Resistance = 2095.00 (12mn poc)
First Level S/R = 2063.00 (5mn poc)
Major Support = ES 1971.00 (1/2R off this year’s high)
Stocks>50dyma numbers: Nyse 69% (from 71%), Nasdaq 58% (from 61%), R2000 62% (from 66%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at at 6.13. Wednesday’s ratio at 6.27 was a 43day high. Bull fund assets that I follow have increased by 30% this week. On 10/05 the ratio recorded 3.09 which was a two year low.
Supporting Charts:
Bonds TLT: closed just above the 121.40 Support (12mn poc) and needs to hold this level to remain in a strong price location.
Dollar Index: found exact Support on Wednesday at 96.50 (1/2R off this year’s high) and rallied strongly. Price needs to hold this level to remain in a strong price location.
Gold GLD: Lower on Thursday but holding above 108.70, the 1/2R Support off the July low. Resistance at 115.12, the 12mn poc. Momentum (PriceOsc) is positive but down.
Oil USO: The 1/2R Support off the August low is now at 14.28 and USO closed above that level on Thursday.
EURUSD: is today printing below 1.11 (1/2R off this year’s low) in a weak price location.
