Pre-open comment Tuesday 27th September
Note: This was written at 5.15 a.m. ET
I marked Aggressive Buying (green-at-top) on Monday. The 1/2R levels off Aug low now become Support. The LT analysis remains negative but ES showed a first sign of ST strength on Monday by printing above 1147.
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 slightly lower at 1.18. The recent low was 1.10 on 22nd Aug.
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 lined up negatively for equities.
