Technical Analysis – Market pre-open 5th October 2015
Please read previous highlighted comments. On Friday ES opened lower following jobs data but rallied strongly with Aggressive Buying (green-at-top) being marked and closing the week above the 1923.00 poc. As long as ES holds above 1923.00 it is in a strong price location. Pre-open today ES has rallied as high as 1959.25.
Resistance = ES 1971.00 (1/2R off this year’s high)
First Level Support = ES 1923.00 (50dy poc)
Second Level Support = ES 1865.00 (poc)
Important ETF S/R Levels: SPY 198.09 = 1/2R off May high; IWM 111.50 = poc; QQQ 105.10 = maj poc; DIA 166.96 = 1/2R off May high.
Stocks>50dyma numbers: Nyse 27%, Nasdaq 27%, R2000 27%, UK 29%. Numbers >50 are supportive.
CP Market Charts: All major Market Charts remained negative.
Sentiment: My version of the Rydex Assets Ratio finished the week at 3.80. On 09/18 the ratio reached 3.7 the lowest level since October 2013.
Supporting Charts:
Bonds TLT: printing in a strong price location above 121.40 (12mn poc). There is resistance at 126.70, the 1/2R off this year’s high.
Dollar Index: recently found Support at 94.67, the 12mn poc. Rallied back to the Resistance at 96.50 (1/2R off this year’s high) without overcoming it and is still printing below that level.
Gold GLD: rallied strongly on Friday above 107.78, the 1/2R off July low. This is strong price location if it holds.
Oil USO: is currently finding Support at the 1/2R off August low. Price below this level would be weak location.
EURUSD: is weaker printing back below 1.1340 (12mn poc). But in the ST, the chart is currently being Supported by the 1/2R off March low at 1.1083. Price below this level would suggest further weakness.
