Technical analysis – Market pre-open 9th November 2015
On Monday and Tuesday last week buyers were active, generating higher, wide Value Areas. Then followed two days where sellers were active generating overlapping, narrow VAs which is typical corrective activity in an uptrend with no sign of real dayframe weakness. Friday was a little different and saw buyers active with a lower Value Area being generated which indicates the possibility of further weakness especially as the VA was below 2095 (12mn poc) which could be intraday Support or Resistance today. At current levels I want to see price back above 2095 before assuming higher. Significant Sellers have an opportunity at the start of this week – let’s see if they make a mark having been absent for seventeen days.
Key Charts: IWM closed above 118.0, the 1/2R off this year’s high. Chart is in a strong price location if it holds this level.
UK FTSE100 closed below its key level which is 6445.50.
First Level S/R = 2095.00 (12mn poc)
Second Level Support = 2063.00 (5mn poc)
Market Charts: Nyse, Nasdaq and R2000 turned positive. UK stayed neutral.
Stocks>50dyma numbers: Nyse 67%, Nasdaq 65%, R2000 68%, UK 64%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 8.39, a 55day high.
Supporting Charts:
Bonds TLT: down sharply on Friday. Momentum (PriceOsc) is down and negative. Major Time Support at 117.14.
Dollar Index: sharply higher on Friday and printed its highest level since April.
Gold GLD: looks set to test the July low. Momentum (PriceOsc) is negative and down.
Oil USO: The 1/2R Support off the August low is at 14.28 and USO has to hold this level to remain in a strong price location.
EURUSD: printing below 1.11 (1/2R off this year’s low) in a weak price location.
