Technical analysis – Market pre-open 11th November 2015
Buyers were active intraday during Tuesday’s session. The Value Area was narrow and “inside” the previous VA so not a convincingly Effective session for the Buyers. Even so, the 5month Support at 2063 has held and ES is not in a weak position unless that level is broken – and Significant Selling has not yet been marked. This looks like normal corrective price action so far but I would prefer ES above 2095 before considering new longs. One hour pre-open ES has probed 2086 (dashed), the very minor 1/2R off the recent high.
Key Charts: IWM closed almost at 118.0, the 1/2R off this year’s high. UK FTSE100 closed below its key level which is 6445.50.
First Level Resistance = 2095.00 (12mn poc)
First Level Support = 2063.00 (5mn poc)
Stocks>50dyma numbers: Nyse 63% (from 62%), Nasdaq 61% (unch), R2000 63% (from 62%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was very slightly higher at 8.41 which is a 57day high.
Supporting Charts:
I’ve been saying in recent webcasts that Copper looks set to test the August low and that happened on Tuesday which puts Copper at a six year low.
Bonds TLT: has this week reached its lowest level since July. Momentum (PriceOsc) is down and negative. Major Time Support at 117.14. Also – the low this week for IEF, the 7-10 yr ETF, has been the 105.00 maj poc Support. Good chart to monitor.
Dollar Index: on Tuesday printed its highest level since April.
Gold GLD: looks set to test the July low. Momentum (PriceOsc) is negative and down.
Oil USO: closed below the 14.28, the 1/2R off the August low, in a weak price location and futures indicate a lower open today.
EURUSD: printing below 1.11 (1/2R off this year’s low) in a weak price location.
