posted 09.27 a.m. est
pre-open comment Friday 4th October
See Wednesday’s pre-open comments, highlighted. The local poc has shifted back down to 1685.50 and that was close to the high of Thursday’s session, see chart. Price location is weak below 1685.50 and pre-open today ES is printing below that level. Significant Selling marked below 1685.50 would suggest further weakness, Bulls of any timeframe would want to see ES recover that level asap.
Also, Momentum (Price Osc) continues lower for all four Index ETFs and Breadth numbers fell quite sharply yesterday (see below).
Stocks>50dyma numbers: Nyse 57% (from 66%), Nasdaq 59% (from 65%), R2000 54% (from 64%). Numbers >50 are considered supportive.
First Level Resistance = 1685.50 poc
First Level Support = 1653.50 poc
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.44. Tuesday’s ratio at 4.54 was the highest ratio since 06/11. This is a contrarian indicator. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Printed a 31day high last week probing the 6mn poc at 107.22. Chart is currently printing below that level.
Oil USO: Closed Thursday back below 37.31, the low of the Support/Resistance band. Momentum is negative and turned back down. I’m not interested in considering the long side of this chart until price can print time above 37.93, the maj poc.
Gold GLD: Printed a 39dy low on Tuesday and remains below 134.17, the 12mn poc, in a weak price location.
Dollar Index: Is today printing below the important level at 80.15 (major 1/2R and poc). Dollar Bulls would want to see price printing back above this level asap.
EURUSD: On Thursday printed its highest level since February.
