posted 9.29 a.m. ET
Pre-open comment Thursday 20th October
Wednesday’s session was generated inside Tuesdays. Overnight ES has probed up into the 1214.50 1/2R and found Resistance. Currently printing 1206. We have proven levels of Support and Resistance here. Significant Buying marked above 1214.50 indicates higher. ES is overbought but for me only Significant Selling marked below 1189 would suggest further weakness in the ST.
1st Level Resistance = 1214.50 1/2R off May high (SPY 122.30)
1st Level Support = 1189 (4month poc) (SPY 119.44=now 5MnPoc)
ST Sentiment: My version of the Rydex Assets Ratio was higher at 1.82, a 50day high. Bull fund assets that I follow reached a 54 day high and Money Market assets, a 50 day low. Increasing Bulls here. If ES manages to break out above the Resistance, I would expect the ratio to increase strongly which would be interesting.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Momentum (PriceOsc) has been higher for eighteen consecutive days and on Monday printed as high as 1.3905 – just below 1.3965, the major 1/2R off 2008 high.
? Dollar Index: Momentum has been lower for seventeen consecutive days. Support at 76.27, the 1/2R Support off the May low.?
TLT: Momentum has been lower for ten consecutive days but chart is oversold (14dy RSY < 40LBB)
imo these charts have a negative bias for equities in the LT but unclear in the ST.
