posted 05.00 a.m. est
pre-open comment Thursday 17th October
Please note this was published at 5a.m. est.
Buyers have been active and so far there has been no markable Selling Response. All of this week’s price action has taken place above the 1685.50 poc and as long as ES holds above that level it remains in a strong price location. A further positive would be price accepted at or above 1704.50 which is the VAH of the distribution that began in early July, see previous highlighted comments.
First Level Support = 1685.50 poc
Second Level Support = 1653.50 poc
Stocks>50dyma numbers: Nyse 75%, Nasdaq 70%, R2000 72%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 3.93. 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: The local poc migrated lower to 106.34 last week and is now Resistance for this chart which is currently printing below that level. Momentum is down.
Oil USO: Consolidating 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.
Gold GLD: Remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative and down.
Dollar Index: Is now printing back below the important level at 80.15 (major 1/2R and poc). Dollar Bulls would want to see price recover back above this level.
EURUSD: Currently printing close to recent high which is the highest level since February. Momentum is postive and with a strong close today will turn up.
