emini futures 2nd November 2018 – pre-open from Chartprofit
I wrote on Tuesday >>yesterday’s session low was a test of the 12month Value Area low at 2605 (dashed line). If this is a correction in an ongoing bull market I would expect a test of a major VAL to be rejected, i.e. the market rallies.<<
We have seen the market rally from there and it looks like rejection.
I also wrote >>I would want to see ES printing back above 2718 before assuming any strength.<<
ES is printing above 2718. Significant Buying (green) marked above this level and improvement in the Breadth numbers, see below, would be further positives. A slight concern in my mind is the fact that after such a sharp sell-off we didn’t see more capitulation in the Sentiment numbers. Bulls would want to see ES hold 2718 now. Price back below that level would put the recovery scenario in doubt.
ETFs: Major Levels. SPY = 271.7, IWM = 153.5.
Stocks>50dyma numbers: Nyse 22% (from 18%), Nasdaq 24% (from 18%), R2000 21% (from 16%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 11.96, down from 13.58. This on an up day for the market, is encouraging. On 10/22 the ratio fell to 8.68which was the lowest ratio in more than a year. The peak reading is 27.55 recorded 09/07 which equalled the highest ratio in the database.
