posted 9.09 a.m. et
pre-open comment Wednesday 19th September
Tuesday’s session generated a lower, narrower Value Area on less Volume. Since Aggressive Buyers were marked last Thursday we have seen three days where Buyers have been absent and active Sellers have so far failed to do much damage relative to last Thursday’s bar. This is possibly just Buyers Resting but see yesterday’s highlighted comments. The Rydex ratio is concerning (see below).
First Level Support = 1435.00 (18dy poc)
Other Key chart levels this week: Major 1/2R levels (off 2007 high) as follows:
QQQ = 70.13. pre-open chart prints just above this level.
Nasdaq Comp = 3120.50. Closed above this level on Tuesday.
Nasdaq 100 = 2805.60. Closed above this level on Tuesday.
Sentiment: My version of the Rydex Assets Ratio was higher again at 5.51. I only have one ratio higher than this in my database (5.64 on 3rd April). This level of optimism from the Rydex traders usually indicates limited upside in the ST.
Supporting Charts (+ or – or ? for equities). UNCHANGED
(Momentum = daily PriceOsc)
? EURUSD: The major poc remains at 1.2777 but the 12mnth poc has migrated to 1.3117. As the chart currently prints back below this level, 1.3117 is now Resistance of some importance. Chart printing time above 1.3117 would be strong price location.
+ Dollar Index: Last week printed its lowest level since early May and is printing below the major level at 80.15.
? TLT: TLT is oversold and printing just above Major poc Support at 117.15. Until that level is broken I cannot assume further ST weakness.
imo it is currently difficult to imply an ST bias for equities from these charts.
