pre-open comment Wednesday 18th September
During Tuesday’s session ES accepted price in the area of Monday’s red-at-top high negating any ST negative implications of that imbalance, see yesterday’s highlighted comments. The inside Value Area was very narrow ahead of today’s event risk. ST Bulls would want to see the 12mn poc at 1685.50 hold or quickly recovered in the event of a sell-off.
Stocks>50dyma numbers: Nyse 65%, Nasdaq 61%, R2000 57%. Numbers >50 are considered supportive.
First Level Support = 1685.50 (12mn poc)
Second Level Support = 1644.50 (5mn poc)
Sentiment: My version of the Rydex Assets Ratio was, once again, almost unchanged at 3.89. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Chart remains in a weak price location below 107.22, the 4mn poc and prints close to the August low.
Oil USO: A little weaker this week and closed Tuesdaty between the important levels, namely above 37.31, the 1/2R off 2011 high and below 37.93, its maj poc. As already noted, Momentum, although positive, has turned down.
Gold GLD: Chart is currently printing below 134.17, the 12mn poc, in a weak price location. Pre-open today has printed a 28day low. Momentum is negative and down.
Dollar Index: Currently in weak price location below the major poc at 82.73. Bulls would want to see price recover that level.
EURUSD: Currently printing in a stronger price location above 1.3228, the 1/2R off Feb high.
