pre-open comment Wednesday 31st October
Dayframe: Last week I marked Significant Selling twice and no Significant Buying. Sellers are in control of the dayframe. While the US markets have been closed this week Europe has rallied a little and overnight ES has printed as high as 1418.25.
Longframe: The ChartProfit Market Timing Charts are negative for Nyse and Nasdaq (UK stayed positive)and %Stocks>50dyma numbers are less than 50 for both charts (UK number stayed above 50).
Friday’s session generated yet another overlapping Value Area. The time spent between 1400 and 1415 last week has caused the 6month poc to migrate down to 1407 and the VAL of the range from early August has fallen to 1388 (dashed). The major poc remains at 1397. Time below this level would indicate further weakness. Bulls would hope that 1397 holds as Support (or is recovered quickly on a test) and the %Stocks>50dyma numbers recover back above 50.
First Level Resistance = 1431.25 (1/2R off Sep high)
First Level Support = 1407.00 (6mn poc)
Second Level Support = 1397.00 maj poc
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.47. On 19th Oct the ratio printed 3.33, a 49day low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: The chart prints between the two major levels at 1.3117 and 1.2777. Momentum is down. The 1/2R off Sep high is 1.2988, currently chart prints above this level.
? Dollar Index: The proven Resistance at 80.15 was probed again on Friday. That’s the third time in four weeks. Time spent above this level would put the chart in a stronger price location.
? TLT: currently prints right in the middle between two major levels. Momentum turned up late last week.
imo determining a bias for equities from these charts is currently difficult.
