posted 09.22 a.m. est
pre-open comment Wednesday 9th October
The 1653.500 poc was tested on Wednesday and Aggressive Selling (red-at-bottom) was marked. Red-at-bottom lows are usually tested within a day or two. Bulls would want to see price holding above the 1653.50 poc or recovering quickly if tested again. Breadth numbers have deteriorated (see below).
Stocks>50dyma numbers: Nyse 42%, Nasdaq 47%, R2000 41%. Numbers >50 are considered supportive.
Resistance = 1685.50 poc
Potential Support/Resistance = 1653.50 poc
Sentiment: My version of the Rydex Assets Ratio was again almost unchanged at 4.21. Last week’s 4.54 was the highest ratio since 06/11. This is a contrarian indicator. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Recently probed the 6mn poc at 107.22 but has not yet exceeded this level. Momentum (although postive) is down.
Oil USO: Pre-open today is printing just below 37.31, the low of the Support/Resistance band. I’m not interested in considering the long side of this chart until price can print time above 37.93, the maj poc. Momentum (although negative) is up.
Gold GLD: Printed a 39dy low last week and remains below 134.17, the 12mn poc, in a weak price location.
Dollar Index: Is printing back above the important level at 80.15 (major 1/2R and poc). Dollar Bulls would want to see price holding above this level. Momentum (although negative) is up.
EURUSD: Last week printed its highest level since February – 7day low today. Momentum (although postive) is down.
