S&P 500 emini pre-open Wednesday 22nd October
posted 09.25 a.m. est
See previous comments highlighted on graphic. Aggressive Buying (green-at-top) was marked again on Tuesday. Buyers are currently active and Effective on this timeframe.
Last three Value Areas have been printed above the key level at 1872.00. As long as ES holds above 1913.75 it is in a strong price location in the ST and as long as it holds above 1872.00 it is in a strong price location in the LT.
Momentum (PriceOsc), although negative has turned up for all four major stock index ETFs and most Key charts have moved into a stronger price location (see below). A further confirming positive would be Breadth numbers improving above 50% (see below).
Key Charts/Levels: DIA 164.23 (maj poc) price closed above that level, XLK 38.42 (maj 1/2R) price closed above that level, XLF 21.99 (2yr poc) price closed above that level, IWM still prints below 111.64 (maj poc).
ES First Level Resistance = 1962 (min poc Dec contract)
ES First Level Support = 1913.75 (1/2R off Sep high) eq SPY = 191.90
ES Second Level Support = 1872.00 (maj poc) eq SPY = 187.68
Stocks>50dyma numbers: Nyse 36% (from 25%), Nasdaq 36% (from 28%), R2000 43% (from 34%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio washigher at 5.15. Monday’s 4.83 was the first time the ratio has been below 5 since April 17th (close to the price low).
Supporting Charts:
Bonds TLT: spiked violently higher last week to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: recently printed a four year high but has corrected a little from there.
Gold GLD: earlier in the month the chart tested the Jan 2014 and June 2013 lows and is up off this proven chart Support. Price below these lows would likely spark another round of selling.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken earlier this month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: earlier in the month printed a two year low. There is Support lower at 1.2300
