posted 07.50 a.m. et
pre-open comment Monday 10th September
The Chartprofit Market Timing System is now positive for all Major market Charts. The %Stocks>50dyma numbers are all well above 50 which is supportive.
Last week I marked Significant Buying twice and no Significant Selling. As I wrote pre-open Thursday ES held above its poc Support across the consolidation range in August and this was a positive. On Thursday ES broke higher with Significant Buyers being marked. The 8mn poc now becomes the important level to monitor. Buyers are in control of the dayframe but there is concern re the Sentiment indicators which could easily push to an extreme here, especially the Rydex ratio (see below). We’ll see this week if the consensus polls also push to extreme Bullish reading (i.e. contrarian Bearish).
First Level Support = 1397.00 (8mn poc)
Other Key Charts/Levels: Watching Major 1/2R levels closely this week on the following charts. QQQ = 70.13; Nasdaq Comp = 3120.50; Nasdaq 100 = 2805.60
Sentiment: My version of the Rydex Assets Ratio closed the week at 4.90 but 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)
? KEY CHART EURUSD: last week chart printed its highest level since May and is now attempting to overcome Resistance at the major poc at 1.2777.
? KEY CHART Dollar Index: last week chart printed its lowest level since May and has declined to the major Support level at 80.15.
– TLT: Key Chart. the 5month poc migrated to 125.93 in August. Chart currently prints below that level in a weaker price location.
we should see how EURUSD and Dollar Index react relative to their major Resistance/Support early this week before trying to imply a ST bias for equities.
