Pre-open Wedesday 13th October
An early probe below Tuesday’s First Level S/R at 1155.50 was rejected as Buyers Responded again (green-at-bottom). Aggressive Buying (green-at-top) was also marked. Value Area was wider (overlapping) on increased volume.
First Level S/R for today moves up to 1163 (4daypoc).
Lower support at 1155.5 (10daypoc)
Sentiment: VIX closed at 18.93, the lowest close since late April and the ISEE (equity only) index came in at 244, the highest number since 18th August which lifted the 10dyma to its highest level since the April price high. However, the Rydex timers have still not fully embraced this rally. Even though price prints well above the June and August highs, the ratio does not exceed the levels reached at those points. My version of the Rydex Assets Ratio was down yesterday from 1.93 to 1.81.
Supporting Charts
– USDJPY: new low for this chart on Tuesday
? EURUSD: Price osc lower for four days since the major resistance was reached at 1.3965, the 1/2R off the 2008 high.
? UDX: New eight month low last week but Price Osc higher for last three days.
+ TLT: currently printing below the major 1/2R level resistance at 105.22
imo these charts are mixed and their ST bias for equities is uncertain.
