posted 9.28 a.m. ET
Pre-open comment Wednesday 5th October
ES/SPY (also IWM & DIA) recovered back above their Major POCs late in the session. ES Value Area generated entirely below the Monday’s poc. These are obvious levels for the major ETFs to find Support and Sentiment analysis suggests the market is due a bounce at least but until I mark Effective Buying above these levels I will assume lower based on current LT and ST analysis.
1st Level Resistance = 1132 (40dypoc) (113.34 SPY 20dypoc)
Major S/R 1094 (SPY 109.17)
ST Sentiment: My version of the Rydex Assets Ratio was lower at 1.096. In the last twelve months there has only been one lower ratio than this and that was the recent extreme low for this indicator at 1.095 on 22nd Aug.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Broke Major Support in early September and is now printing below 1.3416 (1/2R Support off June 2010 low).
– Dollar Index: yesterday printed highest level since January.
– TLT: New high yesterday.
imo these charts have a negative bias for equities.
