posted 7.10 a.m. est
Pre-open Tuesday 28th September
I haven’t marked Significant Buyers for five days now but Sellers have not offered a convincing Response so far. Until that happens I will assume this is Buyers resting.
We approach a time pivot at the end of this week / early next week which is a high percentage time period for a turn. Typically the market would accelerate up into that timeframe. As long as ES keeps finding support at obvious levels I’ll assume this scenario is a good possibility. Four hours pre-open ES tested down into First Level Support at 1132 and has rallied.
More important Support remains at 1117 (2month poc).
Sentiment: Rydex Timers have been slow to embrace this rally but are picking it up a little now. My version of the Rydex Assets Ratio was up on Monday from 1.56 to 1.7 which is the highest level since Aug 10th.
Supporting Charts
– USDJPY: 1/2R off the September low is 84.41 and that was the high yesterday. Still in a weak position.
? EURUSD: Overbought and at resistance = 1/2R at 1.35. That was the high yesterday. EURUSD breaking above that level would be a positive.
+ UDX: If this chart cannot recover back above 80.15 it is in a very weak price location.
+ TLT: until this chart recovers back above the major 1/2R level resistance at 105.22 I will assume this chart is postive for stocks.
imo these charts have a slight positive bias for equities.
