S&P 500 emini pre-open Friday 24th October

posted 08.16 a.m. est

Thursday’s session saw a probe above the 1950 level I mentioned on Wednesday, see previous comments highlighted on graphic. It will be interesting to see if this price level is rejected or accepted but no Significant Selling was marked. I have not marked Significant Selling for eight days.

Dayframe: 1937.00 is the v minor (8dy) poc. May be useful level to monitor intraday today.

Momentum (PriceOsc), although negative, has turned up for all four major stock index ETFs and most Key charts have moved into a stronger price location (see webcast). A further confirming positive would be Breadth numbers improving above 50% (see below).

ES First Level Resistance = 1962 (6mn poc Dec contract)
ES First Level Support = 1913.75 (1/2R off Sep high) eq SPY = 191.90
ES Second Level Support = 1872.00 (maj poc) eq SPY = 187.68

Stocks>50dyma numbers: Nyse 38% |(from 31%), Nasdaq 37% (from 30%), R2000 45% (from 35%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 5.90. Monday’s 4.83 was the first time the ratio has been below 5 since April 17th (close to the price low).

Supporting Charts:
Bonds TLT: spiked violently higher last week to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: recently printed a four year high.
Gold GLD: earlier in the month the chart tested the Jan 2014 and June 2013 lows and is 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 earlier this month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300