S&P 500 emini pre-open Monday 6th October

posted 09.17 a.m. est

Dayframe: Buyers Reacted (green-at-bottom) on Thursday. On Friday ES opened just below the 1949 poc and immediately rallied with the Value Area being generated entirely above that level. Pre-open today ES has probed the 1967 poc and price printing time time above that level would put the chart in a ST stronger price location. Breadth numbers and momentum (PriceOsc) are still weak so I will wait for Effective Buying to be marked before considering the long side on any timeframe, see Friday’s comments.

ES Support/Resistance = 1966/67 (min 1/2R and min poc)
ES Support = 1949.00 (4mn)
ES Major Support = 1872

Key Charts/Levels: Pre-open today IWM is printing below 111.64 (2yr poc) in a weak price location. DIA prints just above 170.38 (18mn poc) which woulod be stronger price location if it can hold that level. See also Key Charts TLT and USO, below.

Breadth: CP Market Timing System remained negative for all Major Market charts.
Stocks>50dyma numbers: Nyse 24%, Nasdaq 30%, R2000 25%, U.K. 28%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 8.17. The highest ratio being 10.47 On 07/29.

Supporting Charts:
Bonds TLT KEY Chart: closed Friday above the 117.15 (maj poc). This is strong price location if that level (now Support) holds.
Dollar Index: Printed a new four year high on Friday.
Gold GLD: Recently found resistance at 124.15, the 30mn poc and fell sharply. On Friday printed its lowest level since early January.
Oil USO KEY Chart: Sold-off since mid June and found Support at 34.17 (1/2R off 2009 low). This was broken last week and price printing time below this level would be very weak location and suggest lower.
EURUSD: Earlier in the month chart broke below 1.3066 (3yr poc) and on Friday printed a new two year low.