posted 08.22 a.m. est
pre-open comment Tuesday 1st October
Monday’s session generated a lower, wider Value Area. Responsive Buying (green-at-bottom) was marked. At current levels I need to see Significant Buying marked above 1685.50 before considering new longs.
Stocks>50dyma numbers: Nyse 59%, Nasdaq 62%, R2000 61%. Numbers >50 are considered supportive.
First Level Resistance = 1685.50 poc
First Level Support = 1653.00 poc
Sentiment: My version of the Rydex Assets Ratio was higher at 4.26 which is the highest ratio since 06/18. 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 31day high last week probing the 6mn poc at 107.22. Chart is currently printing below that level. Price above that level would put the chart in a much stronger location.
Oil USO: Printed a 35day low on Monday below 37.31, the low of the Support/Resistance band – weak price location. Momentum is negative and down.
Gold GLD: remains below 134.17, the 12mn poc, in a weak price location. Momentum is negative but has turned up.
Dollar Index: Is today printing below (just) the important Support at 80.15 (major 1/2R and poc). Dollar Bulls would hope this holds, price printing time below this level would put the chart in an extremely weak location.
EURUSD: Has today printed its highest level since February. Momentum is up and positive.
