posted 9.28 a.m. est
Pre-open Thursday 23rd September
ES probed above 1136 (4day poc) immediately after the open on Wednesday but was quickly rejected. This was followed by further weakness as I suggested it might. By the close I had to mark Significant Responsive Selling once again.
Note that the 20week Value Area High is now at 1125 – see highlighted note left.
Dayframe: First Level S/R today is at 1117 (2month poc). Pre-open ES has printed as low as 1117.50. This level could be support or resistance today. If an early probe below that level is rejected and ES recovers then we’ll likely see further strength ST. Intraday resistance at 1117 would most likely see further ST weakness.
ST Sentiment: My version of the Rydex Assets Ratio was unchanged at 1.69. The Rydex Timers have been slow to embrace this rally and although the ratio is now at its highest since the August price high it is not yet signalling any kind of sell signal.
Supporting Charts
? USDJPY:
+ EURUSD: in strong location above the 1/2R off June low and Major poc with momentum up.
+ UDX: major support at 80.15 was broken yesterday. Very important chart. If chart cannot recover back above 80.15 it is in a very weak price location. High so far today is 80.15.
? TLT: pre-open attempt to recover back above the major 1/2R level at 105.22
Dollar Index and TLT at critical levels. These charts are mixed but imo still have a positive bias for equities.
