Technical analysis – Market pre-open 24th November 2015
ES probed the 2094 Resistance (major poc) late last week and has stalled with the last three Value Areas being narrow on below-average Volume. This could be Buyers Resting looking for a response from the Sellers but until price prints time above the 2094 Resistance I will not be initiating new longs at these levels. Overnight ES has declined to test (almost) the 2063 Support. Price printing time below this level would be the first sign of ST weakness.
Momentum (PriceOsc) for the four major stock index ETFs is now negative but ticked up slightly (less negative) on all four charts.
First Level Resistance = 2094.00 (maj poc)
First Level Support = 2063.00 (5mn poc)
Second Level Support = 1971.00 = 1/2R off this year’s high
Stocks>50dyma numbers: Nyse 60% (unch), Nasdaq 56% (unch), R2000 60% (from 59%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 7.25. On 11/11 the ratio reached 8.41 which was a 57day high.
Supporting Charts:
Bonds TLT/IEF : Major Time Support is at TLT 117.14 and Resistance at 121.40. IEF, the 7-10 yr ETF, recently found Support at 105.00 it’s maj poc Support, and has rallied. Good chart to monitor. Futures indicate a higher open today.
Dollar Index: on Monday printed its highest level since April.
Gold GLD: last week printed its lowest level since 2009. Very weak price location. Cash indicates a higher open today.
Oil USO: last week printed its lowest level since August. Futures indicate a higher open today.
EURUSD: on Monday printed its lowest level since April.
