posted 08.55 a.m. est
pre-open comment Monday 14th October
Last week I marked Significant Buying three times and Significant Selling once. Aggressive Buying (green-at-top) was marked again on Friday with Friday’s Value Area being printed entirely above the 1685.50 poc. This is encouraging in the ST but Bulls would now want to see time printed above that level. Pre-open ES is printing at that level.
In the longer timeframe, Friday closed above Mon-Wed Hi-Lo Range indicating Buyers Active on the weekly timeframe but the week produced an outside bar so their activity can be said to be ineffective so far.
Potential Support/Resistance = 1685.50 poc
Support = 1653.50 poc
Breadth: The CP Market Timing System remained negative for Nyse, remained positive for Nasdaq, remained neutral for R2000, remained negative for UK. Breadth numbers improved (below).
Stocks>50dyma numbers: Nyse 72%, Nasdaq 68%, R2000 70%, UK 59%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.0. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: The local poc migrated lower to 106.34 last week and is now Resistance for this chart which is currently printing below that level. Momentum (although postive) is down.
Oil USO: Closed Friday below 37.31, the low of the Support/Resistance band in a weak price location. I’m not interested in considering the long side of this chart until price can print time above 37.93, the maj poc.
Gold GLD: Printing a 3month low last week and remains below 134.17, the 12mn poc, in a weak price location.
Dollar Index: Is printing back above the important level at 80.15 (major 1/2R and poc). Dollar Bulls would want to see price holding above this level. Momentum (although negative) is up.
EURUSD: On 3rd Oct printed its highest level since February and has not shown much weakness from there. Momentum (although postive) is down.
