Technical analysis – Market pre-open 17th November 2015
On Monday buyers were active intraday. The rally was impressive and 2054, the very minor 1/2R off the recent high, has been probed pre-open today. The Value Area was only overlapping/”outside”, on less than average Volume and I would prefer to see a more Effective session from the Buyers (preferably above 2063) before considering the long side. Breadth improved but not yet positive on the Pulse Chart.
First Level Resistance = 2063.00 (5mn poc)
First Level Support = 1971.00 = 1/2R off this year’s high
Stocks>50dyma numbers: Nyse 54% (from 46%), Nasdaq 52% (from 50%), R2000 53% (from 50%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.83. Last week the ratio reached 8.41, a 57day high.
Supporting Charts:
Bonds TLT/IEF : Major Time Support is at TLT 117.14. IEF, the 7-10 yr ETF, found Support at 105.00 it’s maj poc Support. Good chart to monitor.
Dollar Index: has today printed its highest level since April.
Gold GLD: tested the July low last week and printed its lowest level since 2010.
Oil USO: early last week was printing time below 14.28, the 1/2R off the August low, in a weak price location and then feel sharply at the end of the week.
EURUSD: has today printed its lowest level since April.
