Technical analysis – Market pre-open 4th November 2015
See Tuesday’s highlighted comments. Monday’s green-at-top high was tested on Tuesday and a higher Value Area was generated above 2095 (12mn poc). If ES holds above this level it is in a strong price location.
Key Charts: IWM closed above 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 but is currently testing this level.
First Level Support = 2095.00 (12mn poc)
Second Level Support = 2063.00 (5mn poc)
Stocks>50dyma numbers: Nyse 76% (from 75%), Nasdaq 66% (from 64%), R2000 70% (from 69%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.6 which is a 47 day high. On 10/05 the ratio recorded 3.09 which was a two year low.
Supporting Charts:
Bonds TLT: closed below 121.40 (12mn poc) and Momentum (PriceOsc) turned negative.
Dollar Index: Has been consolidating for eight days in a strong price location above 96.50 (1/2R off this year’s high).
Gold GLD: is printing below 108.70, the 1/2R Support off the July low, in a weak price location. Momentum (PriceOsc) turned negative.
Oil USO: The 1/2R Support off the August low is at 14.28 and USO is printing above that klevel this week.
EURUSD: for eight days has been printing below 1.11 (1/2R off this year’s low) in a weak price location.
