Pre-open Thursday 14th October
ES opened and drove higher to its highest level since May 5th with no markable response from the Sellers.
First Level S/R today = 1163 (5daypoc).
Lower support at 1155.5 (10daypoc)
Sentiment: Intraday on Wednesday VIX reached 17.9, the lowest level since late April, but the Rydex timers remain unenthusiastic about this rally. My version of the Rydex Assets Ratio was down again yesterday from 1.81 to 1.59. Bear fund assets that I follow were up by more than 10%. AAII Bulls were also down (slightly) from 49 to 47.1 (Bears also down slightly). If we’re waiting for an obvious peak in public optimism to possibly signal a correction (at least) it hasn’t happened yet.
Supporting Charts
– USDJPY: new low for this chart today.
+ EURUSD: chart now prints above major resistance at 1.3965 (1/2R off the 2008 high).
+ UDX: New ten month low today.
+ TLT: currently printing below the major 1/2R level resistance at 105.22
imo these charts have a positive bias for equities.
