posted 9.19 a.m. et
pre-open comment Tuesday 18th September
Note: we are now following the December contract.
On Monday I marked Significant Selling again but although the Value Area was lower it was narrower and generated less volume so not Effective Selling. Nevertheless as I wrote yesterday the faact that Significant Sellers have been marked prevents me from initiating new long trades, at least until Significant Buyers (green) are marked again.
First Level Support = 1435.00 (15dy poc)
Other Key chart levels this week: Major 1/2R levels (off 2007 high) as follows:
QQQ = 70.13. pre-open chart prints at this level.
Nasdaq Comp Index = 3120.50. Closed above this level on Monday.
Nasdaq 100 Index = 2805.60. Closed above this level on Monday.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.35. This is the highest ratio since 2nd May and I only have two readings higher than this in my database (5.64 on 3rd April and 5.43 on 2nd May). This level of optimism from the Rydex traders usually indicates limited upside in the ST.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
? EURUSD: The major poc remains at 1.2777 but the 12mnth poc has migrated to 1.3117. As the chart currently prints back below this level, 1.3117 is now Resistance of some importance. Chart printing time above 1.3117 would be strong price location.
+ Dollar Index: Last week printed its lowest level since early May and is printing below the major level at 80.15.
? TLT: TLT is oversold and printing just above Major poc Support at 117.15. Until that level is broken I cannot assume further ST weakness.
imo it is currently difficult to imply an ST bias for equities from these charts.
