posted 9.13 a.m. et
pre-open comment Friday 7th September
See yesterday’s highlighted comments. ES broke out of its range to the upside with Significant Buying marked. ES held above the 25day poc Support across the recent range and therefore the chart did not break down which I said yesterday was a positive. The 8month poc has migrated higher to 1397 and that is now First Level Support. This all looks encouraging but there is a concern re the Rydex ratio which is pushing to an extreme (see below).
First Level Support = 1397.00 (8mn poc)
Sentiment: My version of the Rydex Assets Ratio: Thursday’s ratio was 5.35 and I only have two readings higher than this in my database. These are 5.64 on 3rd April and 5.43 on 2nd May.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
+ EURUSD: Today chart printed its highest level since May but has reached Resistance at the major poc at 1.2777.
+ Dollar Index: Recently the 6month poc migrated down to 82.52. Today chart printed its lowest level since May.
– TLT: Key Chart. the 5month poc migrated to 125.93 in August. Chart currently prints just below that level in a weaker price location.
imo these charts currently imply a positive bias for equities but watching TLT closely relative to 125.93.
