Pre-open comment Friday 7th October
Aggressive Buying was marked again on Thursday. Green-at-top highs are tested the following day 80% of the time and this one almost certainly will be as ES has printed as high as 1173.75 pre-open (following a stronger-than-expected payrolls report).
Dayframe: The Buyers have clearly been very active this week but last week’s high has not yet been tested. With momentum falling on the 60minute chart there is a good chance ES will stall here but in the ST the chart is back in a strong position if it can hold above the 40dypoc at 1132.
1st Level Support = 1132 (40dypoc) (SPY 114.85 4mnthpoc)
Major Support 1094 (SPY 109.17)
ST Sentiment: My version of the Rydex Assets Ratio was slightly higher at 1.17. This is very close to the recent extreme low for this indicator at 1.095 on 22nd Aug.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Broke Major Support in early September but has recovered back above 1.3416 (1/2R Support off June 2010 low).
– Dollar Index: On Tuesday printed highest level since January but momentum (PriceOsc) has been lower for eight consecutive days.
– TLT: On Tuesday printed a new high testing again the old high from December 2008. Currently printing back below that level.
imo these charts have a negative bias for equities in the LT but unclear in the ST.
