posted 09.10 a.m. et
pre-open comment Tuesday 2nd October
On Monday Sellers Responded to an early probe above the 1446 First Level Resistance and price was auctioned back to First Level Support at 1435, the 35dy poc. That level held overnight and pre-open ES has been back up to test 1446 again which is the high so far today. In the ST, holding 1435 is encouraging and time printed above 1446 would suggest further ST strength (see yesterday’s comments). Price printing back to Monday’s session high at 1451.50 would negate the ST negative implications of yesterday’s Selling imbalance. Both Significant Buyers and Sellers are still active, vying for control of the dayframe. Effective Selling below 1435 would suggest further weakness.
First Level Resistance = 1446 (min 1/2R off Sep high)
this is the pre-open high today
First Level Support = 1435.00 (35dy poc)
Key chart levels this week: monitoring Maj 1/2R (off 2000 high):
QQQ = 70.13. Nasdaq Comp = 3120.50. Nasdaq 100 = 2805.60.
All three charts closed below these levels on Monday. Bulls would want to see price back above these levels as soon as possible.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.65(from 4.93). The ratio reached 5.51 on 09/18 – I only have one ratio higher than this in my database (5.64 on 3rd April).
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: Major poc Support at 1.2777. Bulls would want to see that level hold. Momentum is still down.
? Dollar Index: is printing between the major level at 80.15 and the 79.19 poc. High on Monday was 80.15. Price above 80.15 or below 79.19 would be strong/weak strong price location.
? TLT: has been printing below the 125.93 (5mn poc) Resistance since early September. Price above that level would be a strong price location and a negative for equities. Momentum is up.
It is difficult to imply an ST bias for equities from these charts.
