pre-open comment Tuesday 22nd October
A narrow, “inside” Value Area was generated on Monday on low Volume. Significant Selling has not been marked for nine days. As of forty minutes pre-open ES has printed as high as 1744.50. A minor (15day) poc has emerged at 1737.50 which may be a useful level to monitor in the ST.
First Level LT Support = 1685.50 poc
Second Level LT Support = 1653.50 poc
Stocks>50dyma numbers: Nyse 82%, Nasdaq 74%, R2000 78%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 3.69, a 20day low. 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: Recently the local poc migrated lower to 106.34. Time printed above this level would put the chart in a stronger price location.
Gold GLD: Remains below 134.17, the 12mn poc, in a weak price location.
Oil USO: Has been consolidating below 37.31, the low of the Support/Resistance band in a weak price location. On Monday broke lower to its lowest level since early July.
Dollar Index: Is printing in a weak price location below 80.15. Dollar Bulls would want to see price recover this level.
EURUSD: Reached its highest level since February last week. In mid September it broke above proven 1/2R Resistance and has consolidated above that level.
