posted 8.57 a.m. est
Pre-open Wednesday 15th September
Note: we’re following the ES December contract now.
One of the conditions that has to be met before I can mark Significant Buying is ES has to close above fifty percent of the day session range and it did not do that on Tuesday so I could not mark Buying.
ES probed above the 4month VAH (see below) on Tuesday. There’s a good possibility that ES needs to backfill and build here.
Important Levels:
ES: Four month Value Area High = 1116 (dotted)
ES Major Poc 1094 (major support)
ES December: 1/2R off April high = 1103 First Level Support
SPY: Bear Market 1/2 = 112.31
SPY: Four month Value Area High = 112.92
SPY Major Poc 109.37 (major support)
SPY: 1/2R off April high = 111.62
ST Sentiment: My version of the Rydex Assets Ratio was slightly up from 1.16 to 1.23 – still low. But VIX reached its lowest level since early May which is a slight concern – as is the latest ISEE (equity only) index which came in at 230, a high number (highest since 18th August).
Supporting Charts
? USDJPY: New multi-year low yesterday – strongly higher today.
+ EURUSD: Price Osc up for ten consecutive days as this chart rallies off the 1.26 support (1/2R off June low).
+ UDX: Momentum is down (PriceOsc lower for ten consecutive days). The 1/2R off Aug low at 81.80 now becomes Resistance.
+ TLT: printing below the major 1/2R level at 105.22 and PriceOsc lower for nine consecutive days.
imo these charts have a positive bias for equities.
