Technical analysis – Market pre-open 3rd November 2015
On Monday I marked Aggressive Buying. These green-at-top highs are tested 80% of the time within a day or two and if that happens ES will be printing above 2095 (12mn poc). If Key Chart IWM can print time above 118 (see below) both charts would be in a strong price location.
Key Charts: On Monday SmallCaps had a strong day and IWM has now reached the next level of Resistance which is 118.0, the 1/2R off this year’s high. Price printing time above this level would suggest further strength.
UK FTSE100 closed below its key level which is 6445.50.
First Level Support/Resistance = 2095.00 (12mn poc)
Second Level Support = 2063.00 (5mn poc)
Stocks>50dyma numbers: Nyse 75% (from 68%), Nasdaq 64% (from 57%), R2000 69% (from 60%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.5 which is a 46 day high. 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) which is strong price location if it holds.
Dollar Index: Has been consolidating for seven days in a strong price location above 96.50 (1/2R off this year’s high).
Gold GLD: closed just below 108.70, the 1/2R Support off the July low. This is weak price location and cash Gold indicates GLD will open lower today.
Oil USO: The 1/2R Support off the August low is now at 14.28 and USO closed above that level on Monday.
EURUSD: for seven days has been printing below 1.11 (1/2R off this year’s low) in a weak price location.
