Technical analysis – Market pre-open 9th October 2015
Thursday’s session generated a second Value Area entirely above 1971.00, the 1/2R off this year’s high. ES now needs to hold this Support to remain in a strong price location. Pre-open ES has printed as high as 2014.00, which is above the September high.
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)
Important ETF S/R Levels: SPY 198.09 = 1/2R off May high; IWM 111.50 = poc and 116.00 maj poc; QQQ 105.10 = maj poc; DIA 166.96 = 1/2R off May high.
Stocks>50dyma numbers: Nyse 64% (from 55%), Nasdaq 52% (from 48%), R2000 59% (from 53%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 3.58 but Monday’s ratio at 3.09 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. TLT closed just above that level on Thursday but futures indicate a lower 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 is weaker today, printing below 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 if it holds and Momentum is positive.
Oil USO: recently found clearly defined 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) in a stronger price location.
