pre-open comment Friday 18th October
On Thursday I marked both Responsive and Aggressive Buying. Buyers have been very active for last seven trading sessions and so far there has been
no markable Selling Response. See also Tuesday’s highlighted comments re price distribution. Breadth numbers increased again (see below) and the
retail Rydex traders remain sceptical, contrarian (see below).
First Level Support = 1685.50 poc
Second Level Support = 1653.50 poc
Stocks>50dyma numbers: Nyse 81%, Nasdaq 73%, R2000 76%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 3.74, an 18day 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 is printing its highest level since early August and above the 106.34 poc. Stronger price location if chart can hold above that
level.
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 but has turned up.
Dollar Index: Is now printing back below the important level at 80.15 (major 1/2R and poc) in a weak price location. Dollar Bulls would want to see price
recover back above this level. Momentum is negative and has turned down.
EURUSD: Up strong on Thursday and is currently printing close to the February high. Momentum is postive and up.
