posted 9.29 a.m. ET
Pre-open comment Thursday 27th October
Tuesday’s red-at-bottom low was tested on Wednesday but Buyers Responded immediately (green-at-bottom) just above 1st Level Support at 1214.50 – dotted on chart (see pre-open comments Monday & wednesday re this level ). With the last imbalance now Buying, short trades are eliminated for me. The market has reacted strongly overnight to news from Europe and pre-open ES is printing above 1270.
1st Level Support = 1231 (10dy poc) (SPY 123.82)
2nd Level Support = 1214.50 1/2R off May high (SPY 122.30)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly to 2.29 from Tuesday’s ratio of 2.34 which was a 50day high.
Supporting Charts (+ or – or ? for equities).
+ EURUSD: currently prints above Resistance at 1.40 (1/2R off May high). Momentum (PriceOsc) has been higher for twenty three consecutive days.
+ Dollar Index: Prints below 76.27 (1/2R off the May low). Momentum has been lower for twenty two consecutive days.
? TLT: Has so far held the 112.13 Support (4mnth poc) but momentum is down again. imo these charts have a positive bias for equities.
