S&P 500 emini pre-open Monday 27th October
Friday’s session made its low just above the minor Support at 1937.00 and Aggressive Buying (green-at-top) was marked later in the day. Significant Buying was marked four times last week and Significant Selling has not been marked for nine days. Pre-open today First Level Resistance at 1962 was probed and ES is lower from there.
Dayframe: 1937.00 is the v minor (9dy) poc. May be useful level to monitor intraday today.
A Key Chart/Level this week is IWM 111.64 (poc). Chart stalled at this level last week. Price above111.64 would be a confirming positive. A further confirming positive would be Breadth numbers improving above 50% (see below).
ES First Level Resistance = 1962 (6mn poc Dec contract)
ES First Level Support = 1913.75 (1/2R off Sep high) eq SPY = 191.90
ES Second Level Support = 1872.00 (maj poc) eq SPY = 187.68
Breadth: CP Market Timing System remained negative for all major Market charts.
Stocks>50dyma numbers: Nyse 43%, Nasdaq 38%, R2000 46%, UK 27% Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.15. On 10/16 the ratio fell to 5.13 which was a six month low.
Supporting Charts:
Bonds TLT: spiked violently higher recently to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: recently printed a four year high.
Gold GLD: earlier in the month the chart tested the Jan 2014 and June 2013 lows and is up off this proven chart Support. Price below these lows would likely spark another round of selling.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken earlier this month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300
