posted 9.28 a.m. ET
Pre-open comment Monday 24th October
Friday extended the Range for the week to 50 points which is close to average. The Close was above the high of the Mon-Wed Range which is usually good for continuation – note though that ES is registering overbought.
The Chartprofit Market Timing System is now positive for Nyse and neutral for Nasdaq. %Stocks>50dyma numbers are also Supportive, being well above 50.
ES must hold above 1214.50 (1/2R) to remain in a strong Price Location.
1st Level Support = 1214.50 1/2R off May high (SPY 122.30)
2nd Level Support = 1189 (4month poc) (SPY 119.44)
ST Sentiment: My version of the Rydex Assets Ratio ended the week down slightly from Wednesday’s 50day high at 1.82.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Current High today is 1.3954, just below the Major Resistance at 1.3965 (1/2R off 2008 high). Momentum (PriceOsc) has been higher for twenty consecutive days.
? Dollar Index: On Friday the chart tested the Support at 76.27 (1/2R off the May low). Momentum has been lower for nineteen consecutive days.
? TLT: Oversold and Momentum was up on Friday for the first time in twelve days. Price is currently just above the 112.13 Support (4mnth poc). Possible turn here for the daily chart if that Support can hold.
imo these charts have a negative bias for equities in the LT but unclear in the ST.
