Technical analysis – Market pre-open 2nd November 2015
Last week ES consolidated higher prices with our First Level Support moving up to 2063.00 as the five month controlling price migrated to this level mid-week. ES needs to hold this level to remain in a ST strong price location. So far there has been no reaction marked from the Significant Sellers. The poc at 2095.00 came back into play as Resistance with the overnight high on Thursday being 2094.75.
Key Charts: On Friday SmallCaps (IWM) closed very close to 115.35, its key level. UK FTSE100 closed below its key level which is 6445.50.
Resistance = 2095.00 (12mn poc)
First Level S/R = 2063.00 (5mn poc)
Major Support = ES 1971.00 (1/2R off this year’s high)
Market Charts: Nyse turned neutral (from negative), Nasdaq, R2000 & UK turned negative.
Stocks>50dyma numbers: Nyse 68%, Nasdaq 57%, R2000 60%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.14 with Wednesday’s ratio at 6.27 being a 43day high. Bull fund assets that I follow increased by 30% last week. On 10/05 the ratio recorded 3.09 which was a two year low.
Supporting Charts:
Bonds TLT: closed above the 121.40 Support (12mn poc) and needs to hold this level to remain in a strong price location.
Dollar Index: Support at 96.50 (1/2R off this year’s high). Price needs to hold this level to remain in a strong price location.
Gold GLD: closed above 108.70, the 1/2R Support off the July low. Resistance at 115.12, the 12mn poc. Momentum (PriceOsc) is positive but down.
Oil USO: The 1/2R Support off the August low is now at 14.28 and USO closed above that level on Friday.
EURUSD: is today printing below 1.11 (1/2R off this year’s low) in a weak price location.
