S&P 500 emini pre-open Thursday 30th October

posted 09.17 a.m. est

ES tested Tuesday’s green-at-top high early in Wednesday’s session but then sold off to find low exactly at the 1962.00 Support, see chart. The last two Value Areas have been printed entirely above that level but Bulls would want to see it hold. Pre-open today that level has been tested again. Significant Selling has not been marked for twelve days now. Key chart IWM is printing above the 111.64 poc and the Breadth numbers have improved above 50% this week.

ES First Level Support = 1962.00 (6mn poc Dec contract)
ES Second Level Support = 1913.75 (1/2R off Sep high) eq SPY = 191.90
ES Major Support = 1872.00 (maj poc) eq SPY = 187.68

Stocks>50dyma numbers: Nyse 53% (from 54%), Nasdaq 54% (from 53%), R2000 63% (from 64%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher again at 8.49, an eighteen day high. Bull fund assets that I follow were up 15%. The ratio is rsing fast indicating the public are moving strongly back into the market. We need to watch this closely.

Supporting Charts:
Bonds TLT: spiked violently higher recently to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: recently printed a four year high.
Gold GLD: earlier in the month the chart tested the Jan 2014 and June 2013 lows. Having rallied a little off that proven chart Support GLD was sharply lower on Wednesday and prints close to the lows. Price below these lows would likely spark another round of selling.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken earlier this month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300