posted 08.56 a.m. est
pre-open comment Wednesday 23rd October
Overnight ES tested down to the minor poc at 1737.50 which provided Support. As I mentioned yesterday this may be a useful level to monitor in the ST. Price printing time below this level would be the first sign of ST weakness. Significant Selling has not been marked for ten days. In the LT as long as ES holds above 1685.50 it is in a strong price location.
First Level LT Support = 1685.50 poc
Second Level LT Support = 1653.50 poc
Stocks>50dyma numbers: Nyse 85%, Nasdaq 74%, R2000 79%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.68, a 21day low. 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: Pre-open today has printed a three month high and above 106.34, the 10month poc.
Gold GLD: Remains below 134.17, the 12mn poc, in a weak price location.
Oil USO: Had been consolidating below 37.31, the low of the Support/Resistance band in a weak price location. Has now broken lower to its lowest level since early July. Momentum is negative and down.
Dollar Index: On Tuesday printed its lowest level since early February. Momentum is negative and down.
EURUSD: On Tuesday printed above the February high to its highest level since November 2011.
