Pre-open comment Monday 26th September
Dayframe: Strictly applying my own rules I had to mark Responsive Buying on Friday. It is noted but I am not placing much Significance on this, especially following the sell-off earlier in the week. ES printing time above 1147 would be the first minor sign of strength. Time spent below 1133 (the 35dy poc) early in the week, increases the chances that the August low will be tested.
Longframe: Chartprofit Market Timing system was negative for the tenth consecutive week and Supporting Charts have lined up negatively for equities. Friday closed the week below Mon-Wed range low which is not a strong pattern.
1st Level S/R ES = 1147 (1/2R off Aug low)
Major Support ES = 1094 (Maj Poc)
1st Level S/R SPY = 114.87 (4mnth poc)
Major Support SPY = 112.31 (maj 1/2R) & lower at 109.17 (Maj Poc)
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 1.19. This was actually up on the week, and higher than the recent low which was 1.10 on 22nd Aug.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Broke Major Support in early September. 1.3416 is 1/2R Support off June 2010 low and is holding for now.
– Dollar Index: Chart printed a seven month high last week.
– TLT: Last week the Chart tested the Dec 2008 high.
imo these charts have lined up negatively for equities.
