posted 9.26 a.m. est
Pre-open Monday 18th October
Last week Significant Buyers were active on Tuesda, both Responsive and Aggressive. Monday’s poc at 1163 limited the downside for the rest of the week (dotted) and no Significant Selling was marked. In fact there has been no Significant Selling marked (by my criteria) for eleven sessions now.
First Level S/R at the start of this week is 1172.5 the minor (5day) poc. This level could be support or resistance at the start of this week.
Lower support at 1155.5 (10daypoc)
Until Sellers are marked I will expect higher especially f ES can print some time above 1172.50 early in the week.
Breadth: All major Market Timing Charts remain positive (green) but the %Stocks>50dyma for both Nyse and Nasdaq pushed the level of “overboughtness” a little higher again by the end of week. 90% and 81% respectively. This is of concern particularly with the obvious non-confirmation shown between price and the breadth oscillators NetVol%10ma and %NNH25.
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 1.86 down from Thursday’s 1.96. Not yet excessive.
Supporting Charts
– USDJPY: new low for this chart last week.
? EURUSD: Major 1/2R at 1.3965 (off the 2008 high) in play. Chart printing below that level pre-open. Positive for equities if it can recover back above.
+ UDX: New ten month low last week.
+ TLT: new two month low for this chart last week.
imo these charts still have a positive bias for equities.
