Pre-open comment Friday 28th October
Aggressive Buying was marked on Thursday. The stats regarding a green-at-top high being tested the following day (80%) are much less reliable for a gap day (like Thursday) but we can say that a top of any importance is very rarely marked by a green-at-top day.
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 was slightly higher to 2.41 (from 2.29) but this is a 59dy high for the ratio. Rydex Bulls have woken up but on a day like Thursday the increase in the ratio was fairly muted.
LT Sentiment: As covered in yeserday’s webcast the AAII numbers showed increasing Bulls. Bulls% was up to 43% (from 36%) and is the highest since early April. Bears fell to 25% (from 34.6%). The nett at +18 is the highest since mid-February.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: currently prints above Resistance at 1.40 (1/2R off May high). Momentum (PriceOsc) has been higher for twenty four consecutive days.
+ Dollar Index: fell sharply below 76.27 (1/2R off the May low). Momentum has been lower for twenty three consecutive days.
+ TLT: broke the 112.13 Support (4mnth poc) and momentum is down. imo these charts have a positive bias for equities.
