S&P 500 emini pre-open Thursday 16th October

posted 09.13 a.m. est

Wednesday generated a Value Area entirely below the poc at 1872. As I wrote yesterday “Minimum I would want to see is Effective Buying marked above 1872 and other Key Charts in improved price locations”.

ES Second Level Resistance = 1949.00
ES First Level Resistance = 1872.00 (maj poc)

Stocks>50dyma numbers: Nyse 16% (from 17%), Nasdaq 23% (from 20%), R2000 29% (from 26%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was sharply lower on Tuesday but was almost unchanged on Wednesday at 5.91. Note that VIX was above 30 intraday on Wednesday for the first time since December 2011.

Supporting Charts:
Bonds TLT: spiked violently higher on Wednesday to a two year high. Although there was a sharp reaction from there, pre-open today TLT is up from yesterday’s close.
Dollar Index: recently printed a four year high. Has corrected a little from there.
Gold GLD: Last week the chart tested the Jan 2014 and June 2013 lows and is currently up off this proven chart Support. Price below these lows would likely spark another round of selling.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken last week and chart is sharply lower from there, today printing its its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300