Pre-open comment Wednesday 28th September
Dayframe: 1st Level Resistance for Tuesday was 1190 and that was the exact intraday high. If ES can print some time above this proven Resistance it would indicate further ST strength. Significant Selling marked below the 1147 Support would increase the likelihood that the August low will be tested and this would most likely be the faster move as the LT analysis remains negative. If ES stays within those two levels then 1171 could attract time.
1st Level Resistance ES = 1190 (poc) (119.43 SPY)
1st Level Support ES = 1147 (1/2R off Aug low) (116.89 SPY)
Major Support ES = 1094 (Maj Poc) (109.17 SPY)
ST Sentiment: My version of the Rydex Assets Ratio was higher at 1.26 (from 1.18). The recent low was 1.10 on 22nd Aug. Also the ISEE (equity-only) index came in at 119 which is the lowest single reading since mid June.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Broke Major Support in early September. 1.3416 is 1/2R Support off June 2010 low and is holding for now.
– Dollar Index: Chart printed a new seven month high on Monday.
– TLT: Last week the Chart tested the Dec 2008 high.
imo these charts have a negative bias for equities.
