Pre-open Friday 24th September
ES found support at the 2month poc 1117 and has rallied.
Dayframe: First Level S/R today is between the very minor (but important) 3day 1/2R at 1130.50 and the 5day poc at 1132. If ES can hold above here early in the session I would expect further strength especially with the dollar index in a weak position (see below).
More imortant Support remains at 1117 (2month poc).
Sentiment: In the eBook on Monday I wrote >>Sentiment numbers are steadily rising and could hit extremes if the market pushes higher. There’s a strong possibility this market could accelerate up into a top of some degree. Rydex Ratio will be a big clue here.<< As I been saying for a while the Rydex Timers have been slow to embrace this rally – in fact yesterday my version of the Rydex Assets Ratio was down from 1.69 to 1.61.
Supporting Charts
? USDJPY: Has fallen back after last week’s rally.
+ EURUSD: new five month high today.
+ UDX: major support at 80.15 was broken on Wednesday. Very important chart. If chart cannot recover back above 80.15 it is in a very weak price location.
? TLT: turned lower from the major 1/2R level resistance at 105.22
Dollar Index and TLT at critical levels. These charts are mixed but imo still have a positive bias for equities.
