pre-open comment Tuesday 23rd October
Note: this was written at 8a.m. et
Monday’s session generated a lower/overlapping VA on less Volume and broke below Friday’s red-at-bottom low. ES rallied to the close but the whole of yesterday’s session took place below the 1435 poc which is weak price location. Overnight ES has fallen back and as I write (8am est) it has reached 1411 on the low, its lowest print since early September. The VAL of the current range is now 1422; Bulls would want to see Responsive Buyers entering the market quickly to auction ES back into that Value Area (above 1422). See yesterday’s highlighted comments.
Second Level Resistance = 1442.25 (1/2R off Sep high)
First Level Resistance = 1435.00 (5mn poc)
First Level Support = 1397 maj poc
Key chart levels this week: I continue to monitor the Maj 1/2R (off 2000 high) on following charts. Price location relative to these levels is currently weak.
QQQ = 70.13 (Mon Close 66.02). Nasdaq Comp = 3120.50 (Mon Close 3016.96). Nasdaq 100 = 2805.60 (Mon Close 2694.96).
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 3.54. Friday’s ratio at 3.33 was a 49day low.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
? EURUSD: Has reached the 2yrPoc Resistance at 1.3117. Momentum is up and if that Resistance is overcome then the September high at 1.3172 could also be challenged.
? Dollar Index: Has recovered back above the 79.19 poc. Time spent below that level would indicate further weakness.
+ TLT: pre-open prints below 121.64, the 1/2R off the September low. Momentum turned down last week and a 23day low was printed on Thursday.
imo determining a bias for equities from these charts is currently difficult. EURUSD printing time above 1.3117 and Dollar Index printing time below 79.19 would be supportive for equities.
