Pre-open comment Wednesday 19th October
Buyers Responded strongly to a probe of the 1189 poc early in the session (see yesterday’s highlighted comments) and Aggressive Buying was marked later in the day (green-at-top) auctioning ES above the 1214.50 1/2R which is now 1st Level Support. Overnight this level has provided Support. Stats suggest that yesterday’s green-at-top high will be tested during today’s session. Short Trades eliminated for me until Significant Selling is marked again.
%Stocks>50dyma numbers for both Nyse and Nasdaq are above 50 which is ST supportive.
Dayframe: ES is finding Support at obvious levels which confirms the uptrend on this timeframe.
1st Level Support = 1214.50 1/2R off May high (SPY 122.30)
2nd Level Support = 1189 (4month poc) (SPY 119.44=now 5MnPoc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly at 1.74 from Monday’s 1.79 which was a 44dy high.
Supporting Charts (+ or – or ? for equities).
? EURUSD: Momentum (PriceOsc) has been higher for seventeen consecutive days and on Monday printed as high as 1.3905 – just below 1.3965, the major 1/2R off 2008 high.
? Dollar Index: Momentum has been lower for sixteen consecutive days. Support at 76.27, the 1/2R Support off the May low.?
TLT: Momentum has been lower for nine consecutive days but chart is oversold (14dy RSY < 40LBB)
imo these charts have a negative bias for equities in the LT but unclear in the ST.
