Technical analysis – Market pre-open 4th December 2015
Thursday’s session opened below 2087 and sold off. Sellers were highly active intraday and a lower, wider Vale Area was generated. With ES unable to print time above the the major poc at 2094 and Aggressive Selling (red-at-bottom) now being marked I will be cautious here.
Area of Price Resistance 2087.00 (5mn poc) to 2094.00 (maj poc)
Dayframe: The minor 1/2R off the November high is at 2054.50 and ES found Support at this level just before the release of jobs data. Chart up from that level pre-open. Price printing time back below that point post-open would suggest a re-test of Thursday’s low.
Breadth numbers deteriorated, see below.
Stocks>50dyma numbers: Nyse 49% (from 58%), Nasdaq 53% (from 62%), R2000 55% (from 63%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 8.12. Tuesday’s ratio at 9.00 was a 70day high.
Supporting Charts:
Bonds TLT: sharply lower on Thursday. IEF, the 7-10 yr ETF: probed the Resistance at 106.60 (18mn poc) this week but this has been rejected with chart sharply lower on Thursday. Price below 105.00, the major poc, would be weak price location.
Dollar Index: on Monday printed its highest level since the March high but sharply lower on Thusday following the ECB announcement.
Gold GLD: cash Gold printed a new five year low on Thursday. Very weak price location.
Oil USO: on Wednesday printed its lowest level since the August low.
EURUSD: on Monday printed its lowest level since April but sharply higher on Thusday following the ECB announcement.
