posted 09.12 a.m. et
pre-open comment Friday 26th October
Thursday’s session generated another overlapping Value Area and, like Wednesday, Responsive Selling (red-at-top) was marked early in the session. The VAL at 1403 (dashed) has been probed in each of the last three sessions but no significant time has been printed below it. Overnight ES has printed as low as 1394.50 which is a test below the maj poc Support at 1397 but pre-open has recovered back above 1400. Bulls would want to see the 1397 Support hold – time below that level would be a clear indication of further weakness. The first signs of improvement here would be Significant Buyers marked above 1397 and the Nyse %stocks>50dyma number getting back above 50 (see yesterday’s comments above).
First Level Resistance = 1435.00 (5mn poc)
First Level Support = 1397.00 maj poc
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 3.43 (from 3.80). Last Friday’s ratio at 3.33 was a 49day low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: The chart prints between the two major levels at 1.3117 and 1.2777. Momentum is down.
? Dollar Index: The proven Resistance at 80.15 is being probed once again today. Time spent above this level would put the chart in a stronger price location.
? TLT: currently prints right in the middle between two major levels. Momentum is down.
imo determining a bias for equities from these charts is currently difficult.
