posted 9.29 a.m. est
Pre-open Tuesday 26th October
Sellers Responded on Monday (red-at-top) soon after the open and ES closed near the low of the day but the Value Area was higher and wider so this is not yet Effective Selling. Even so I like to see Buying (green) as the most recent imbalance if I’m looking to be long and therefore new long trades are eliminated for me for now.
Dayframe: Pre-open ES is probing down below the First Level support at 1178. ST Bulls would want to see ES quickly back above that level. If value is built below 1178 early in the session then I would expect further weakness in the ST.
ST Sentiment: My version of the Rydex Assets Ratio was down from 1.93 to 1.65 with Bear Fund assets that I follow up 14%.
Supporting Charts
– USDJPY: New low for this chart on Monday.
? EURUSD: Major 1/2R at 1.3965 (off the 2008 high) in play. Chart printing below that level today.
? UDX: there’s been little bounce from the ten month low set on the 15th but Price Osc up for eight days.
+ TLT: chart still in weak location with confirmed lower high and lower low.
these charts are mixed and in the ST it is too dificult to imply a bias for equities.
