Pre-open comment Tuesday 7th October
On Monday Sellers Reacted (red-at-top) as an early probe above the 1967 poc was rejected, see yesterday’s comments. Pre-open today, ES has tested the 1949 Support and is currently printing above that level. These two levels, 1967 & 1949, are the most important to monitor now and very close in terms of printed time. Currently 1967 has it as the 4mn poc. I am assuming that Effective Buying above 1967 or Effective Selling below 1949 will start the next directional move.
ES First Level Resistance = 1966/67 (min 1/2R and poc)
ES First Level Support = 1949.00 (poc)
ES Major Support = 1872
Key Charts/Levels: pre-open IWM is printing below 111.64 (2yr poc) and DIA below 170.38 (18mn poc) in weak price locations. See also Key Charts TLT and USO, below.
Stocks>50dyma numbers: Nyse 21% (from 24%), Nasdaq 26% (from 30%), R2000 20% (from 25%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 7.9. The highest ratio in my database was 10.47 on 07/29.
Supporting Charts:
Bonds TLT KEY Chart: pre-open today is printing above 117.15 (maj poc). This is strong price location if that level (now Support) holds.
Dollar Index: Printed a new four year high on Friday.
Gold GLD: Last week the chart tested the Jan 2014 and June 2013 lows and is currently holding this proven chart Support. Therefore price below last week’s low may spark another round of selling.
Oil USO KEY Chart: Sold-off since mid June and found Support at 34.17 (1/2R off 2009 low). This was broken last week and price printing time below this level is very weak location.
EURUSD: Earlier in the month chart broke below 1.3066 (3yr poc) and on Friday printed a new two year low.
