posted 08.53 a.m. est
pre-open comment Thursday 10th October
See yesterday’s comments highlighted on graphic. Tuesday’s red-at-bottom low was tested but Buyers Responded (green-at-bottom) and auctioned ES back above the 1653.50 poc. This is encouraging for Bulls in the ST but ES must now hold that level. I’m not ineterested in long side unless Significant Buying is marked above 1685.50 or unless that poc migrates lower and Buying is marked. Breath would also need to improve (see below).
Stocks>50dyma numbers: Nyse 42%, Nasdaq 46%, R2000 42%. 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 lower at 3.92. Last week’s 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: Recently probed the 6mn poc at 107.22 but has not yet exceeded this level. Momentum (although postive) is down.
Oil USO: Closed Wednesday below 37.31, the low of the Support/Resistance band in a weak price location. I’m not interested in considering the long side of this chart until price can print time above 37.93, the maj poc. Momentum is negative and down.
Gold GLD: Printed a 39dy low last week and remains below 134.17, the 12mn poc, in a weak price location.
Dollar Index: Is printing back above the important level at 80.15 (major 1/2R and poc). Dollar Bulls would want to see price holding above this level. Momentum (although negative) is up.
EURUSD: Last week printed its highest level since February. Momentum (although postive) is down.
