posted 8.02 a.m. ET
Pre-open comment Friday 21st October
Thursday’s session, like Wednesday’s, was generated within the range of Tuesday’s. You can see the Support provided by the 1189 poc over the last few days, see dashed line on chart. Pre-open ES is printing above the 1214.50 Resistance which is now First Level Support. Range for the week is less than 40wk average and if Range Extension occurs it is likely to be higher.
1st Level Support = 1214.50 1/2R off May high (SPY 122.30)
2nd Level Support = 1189 (4month poc) (SPY 119.44=now 5MnPoc)
ST Sentiment: My version of the Rydex Assets Ratio was lower at 1.67. Down from Wednesday’s 50day high for the ratio. repeating yesterday’s comment >>If ES manages to break out above the Resistance, I would expect the ratio to increase strongly which would be interesting.<<
Supporting Charts (+ or – or ? for equities).
? EURUSD: Momentum (PriceOsc) has been higher for nineteen consecutive days. Resistance at 1.3965, the major 1/2R off 2008 high.
? Dollar Index: Momentum has been lower for eighteen consecutive days. Support at 76.27, the 1/2R Support off the May low.
? TLT: Momentum has been lower for eleven consecutive days. Support at 112.13 (4mnth poc).
imo these charts have a negative bias for equities in the LT but most likely positive in the ST.
