emini futures 19th October 2018 – pre-open from Chartprofit
On Wednesday after close I wrote >>Bulls would want to see the Support at 2774.00 held, as it was today<<.
In fact the poc Support at 2774 was tested during Thursday’s session. Currently ES seems to “like” 2774, see Thursday’s profile. Overnight most time was spent above that level and Support was found there on the hourly chart. On Tuesday Aggressive Buying (green) was marked, but the low of that day was also broken on Thursday which negates any ST positive implications of that buying imbalance.
I also wrote on Wednesday >>The Pulse Chart is still negative so let’s not assume too much.<< That remains the case. Price above 2774 is encouraging, time below that level would increase the chances of the major Support at 2718 being re-tested. Price above 2829.50, the 1/2R off the September high (dashed line) would be a positive. I remain cautious until then. The equivalent level for SPY is 282.15.
minor Support/Resistance = 2774.00 (4mn poc)
major Support = 2718.00
ETFs: SPY and IWM also held their major Support last week; SPY = 271.7, IWM = 153.5.
Stocks>50dyma numbers: Nyse 20% (from 26%), Nasdaq 19% (from 24%), R2000 16% (from 21%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 15.76. Last Thursday’s ratio at 14.93. was the lowest since early May. The peak reading is 27.55 recorded 09/07 which equalled the highest ratio in the database.
