posted 9.29 a.m. est
Pre-open Friday 8th October
Thursday built Value in the same area as the previous two days. No Significant Selling has yet been marked. 1155.5 is the minor (3day) poc. This is First Level S/R today. Intraday resistance from this level would be ST bearish.
More important support at 1139 (7week poc).
LT Sentiment: AAII (public) Poll reported Bull% at 49 (up from 42.5) and Bear% at 27.7 (down from 31.6). This gives a nett figure of 21.3. As you know I follow a 4wkma of the nett which is now at 19.6 which is the highest since May 2008. The public are declaring that they are very bullish and that is usally a warning.
ST Sentiment: My version of the Rydex Assets Ratio was down slightly from 1.82 to 1.84. Wednesday was a 40day high for this ratio but at the June and August price highs this ratio was higher. A ratio above 2 would exceed those levels. This isn’t yet excessive. The ISEE (equities only) Index came in at 206. Readings above 200 are usually considered high. Four of the the last five days have closed above 200.
Supporting Charts
– USDJPY: New low for this chart today.
? EURUSD: 1/2R off the 2008 high comes in at 1.3965. So 1.40 level is v. important. That level in play now.
+ UDX: New eight month low on Thursday.
+ TLT: currently printing just below the major 1/2R level resistance at 105.22
imo these charts mixed but still have a positive bias for equities.
