Technical analysis – Market pre-open 12th October 2015
Last week I marked Aggressive Buying twice and no Siugnificant Selling. Friday’s session generated a third Value Area entirely above 1971.00, the 1/2R off this year’s high which is strong price location. ES now needs to hold this Support to remain in a ST strong price location and as long it holds above the 1923.00 poc (and that poc does not migrate) it is in a strong LT price location. Breadth also improved last week, see below.
First Level Support = ES 1971.00 (1/2R off this year’s high)
Second Level Support = ES 1923.00 (50dy poc)
Major Support = ES 1865.00 (poc)
Key Support this week: SPY 198.10 = 1/2R off May high; QQQ 105.10 = maj poc; DIA 166.95 = 1/2R off May high.
Key Support this week: IWM 116.00 = maj poc; FTSE100 6445.50 = 1/2R off April high.
CP Market Charts: Nyse turned positive from negative; Nasdaq, R2000 and UK all turned neutral from negative.
Stocks>50dyma numbers: Nyse 65%, Nasdaq 53%, R2000 60%, UK 53%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.62 but earlier in the week the ratio recorded 3.09 which was a two year low.
Supporting Charts:
Bonds TLT: has to hold above the 121.40 Support (12mn poc) to remain in a strong price location and closed just above that level on Friday. Futures indicate a higher open today.
Dollar Index: in September rallied back to the Resistance at 96.50 (1/2R off this year’s high) without overcoming it and fell last week. Is today printing very close to 94.67, the 12mn poc.
Gold GLD: has been printing above 107.78, the 1/2R off July low. This is strong ST price location and Momentum is positive.
Oil USO: recently found clear Support at the 1/2R off August low and is up from that level. Momentum is now positive.
EURUSD: is today printing above 1.1340 (12mn poc). This is stronger price location if it holds.
