posted 9.22 a.m. est
Pre-open Monday 1st November
Last week I marked two instances of Significant Responsive Selling (red-at-top) and one instance of Significant Responsive Buying (green-at-bottom).
The 30dy poc migrated higher last week to 1178. That’s the First Level support at the start of this week.
Longframe: Chartprofit Market Timing System stays positive for all U.S. major Market Charts. U.K. Market Chart turned neutral.
Still waiting for Effective Selling. If I mark that below 1178, I’d be expecting a decline to the poc at 1139.
Dayframe: ES will gap open higher today. As long as it holds above 1178 I have to expect higher in the ST.
LT Sentiment: Consensus Polls still look toppy, Option Ratios do not reflect the same level of enthusiasm, Rydex Data fired a warning last week (see below).
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 2.07, down slightly from Wednesday’s 2.20 (the highest ratio since May).
Supporting Charts
– USDJPY: Chart hit a new low today.
? EURUSD: Major 1/2R at 1.3965 (off the 2008 high) in play. Chart currently printing very close to that level.
? UDX: there’s been little bounce from the ten month low set on the 15th October but Price Osc up for twelve consecutive days. Today the chart has printed a 5day low.
+ TLT: chart still in weak location with confirmed lower high and lower low although today has printed a 5day high.
imo these charts are currently mixed and have no obvious ST bias for equities. EURUSD will provide a big clue re IT direction for Equities, specifically if it finds resistance or support at the Major 1/2.
