Pre-open Thursday 21st October
Wednesday opened below the 6day VAL at 1165.50 and then immedaitely rejected that price level quickly as I said yesterday “ST Bulls would want to see”.
Value Area was higher and narrower on less volume but almost all the sessiion was spent consoilidating above the First Level S/R at 1172.50 which is a stronger price location and should see ES higher if it holds early in today’s session.
First Level S/R: 1172.50 (minor poc)
Support: 1155.5 (15daypoc)
ST Sentiment: My version of the Rydex Assets Ratio was down from 2.03 to 1.87. I’d expect the ratio to increase above 2 if ES breaks to new ground this week or early next.
Supporting Charts
– USDJPY: new low for this chart last week.
+ EURUSD: Major 1/2R at 1.3965 (off the 2008 high) in play. Chart printing above that level as I write.
+ UDX: New ten month low last week. Price Osc still down.
+ TLT: new two month low for this chart last week.
imo these charts have a positive bias for equities.
