Pre-open comment Monday 31st October
The Chartprofit Market Timing System is now positive for all Major Market Charts. Friday Close was above Mon-Wed Range high which is usually good for continuation.
Dayframe: The LT indications look positive but the market is very overbought by most technical measures I use (see also Rydex data below) and there were gaps left last week. Market could well consolidate here.
1st Level Resistance = 1277.50 (very min poc)
1st Level Support = 1231 (10dy poc) (SPY 123.82)
2nd Level Support = 1214.50 1/2R off May high (SPY 122.30)
ST Sentiment: My version of the Rydex Assets Ratio finished the week at 2.47 which is a 60day high and the VIX closed the week at a 60day low (24.53).
Supporting Charts (+ or – or ? for equities).
? EURUSD: today prints back below 1.40 (1/2R off May high). Looking to test the all-important 1.3965 (1/2R off May 2008 high).
+ Dollar Index: sharply higher today but still below 76.27 (1/2R off the May low).
+ TLT: today prints back above the 4mnth poc at 112.13.
imo these charts have a positive bias for equities.
