Technical analysis – Market pre-open 13th November 2015
Please read previous highlighted comments. In Thursday’s session a probe into the 5mn poc at 2063 was rejected and ES sold off. The Value Area was generated entirely below that level which is an indication of weakness and Aggressive Selling was marked. These red-at-bottom lows are tested 80% of the time within a day (or two).
Key Charts: Momentum, although positive, is down for all four major stock index ETFs. Key chart IWM closed below 115.35, its maj poc.
First Level Resistance = 2063.00 (5mn poc)
Stocks>50dyma numbers: Nyse 51% (from 61%), Nasdaq 52% (from 58%), R2000 54% (from 60%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 7.95. Wednesday’s ratio at 8.41 was a 57day high.
Supporting Charts:
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: tested the July low on Thursday and printed its lowest level since 2010.
Oil USO: has this week been printing below 14.28, the 1/2R off the August low, in a weak price location and on Thursday printed a 54day low.
EURUSD: printing below 1.11 (1/2R off this year’s low) in a weak price location.
