Technical analysis – Market pre-open 2nd December 2015
ES consolidated for seven days having stalled at the 2094 maj poc with no Significant Buying being marked, see previous highlighted comments. On Tuesday Aggressive Buying (green-at-top) was marked as ES broke above that level. We have three days of potentially high volatility but if chart holds above 2094.00 it is in a strong price location.
Support is 2087.00 (5mn poc) to 2094.00 (maj poc)
Stocks>50dyma numbers: Nyse 67% (from 63%), Nasdaq 64% (from 63%), R2000 68% (from 66%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 9.00 which is a 70day high.
Supporting Charts:
Bonds TLT/IEF : on Tuesday TLT broke above the Resistance at 121.40 which is strong price location if it holds. IEF, the 7-10 yr ETF, recently found Support at 105.00 it’s maj poc Support, and yesterday broke above 106.60 (18mn poc).
Dollar Index: on Monday printed its highest level since the March high. Close to that level today.
Gold GLD: printed a new five year low last week. Very weak price location.
Oil USO: I need to see USO printing above 14.28, the 1/2R off August low before considering the loing side. Currently in a weak price location.
EURUSD: on Monday printed its lowest level since April. Close to that level today.
