posted 09.18 a.m. est
pre-open comment Thursday 19th September
Following the FED announcement ES spiked to a new high and Aggressive Buying (green-at-top) was marked. The only technical negatives I can see at the moment are the overbought readings, e.g. SPY has a RSI(14) reading above 70, a level it reached at the May and August highs – however, Sentiment readings are currently more subdued than they were at those previous highs, e.g. the Rydex Ratio, see below.
Stocks>50dyma numbers: Nyse 75%, Nasdaq 64%, R2000 62%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was, once again, almost unchanged at 3.87. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Printed a twelve day high yesterday but remains in a weak price location below 107.22, the 6mn poc.
Oil USO: Still holding a strong price location above its Support band, i.e. 37.31, the 1/2R off 2011 high and 37.93, its maj poc.
Gold GLD: Despite printing a seven day high yesterday, the chart remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative and down.
Dollar Index: Yesterday’s sharp sell-off briefly tested the important Support at 80.15, major 1/2R and poc. Price printing time below this level would put the chart in an extremely weak location.
EURUSD: On Wednesday printed its highest level since February.
