posted 9.29 a.m. et
Pre-open comment Tuesday 15th November
ES just about held above the bottom of the Support band (1244) during Monday’s day session but overnight has printed as low as 1234 (currently prints 1243 pre-open). EURUSD is a key chart at the moment and that chart has broken below its critical poc at 1.3635. Supporting charts appear to be lining up negatively for equities (see below).
I would want to see a minimum of ES printing some time back above 1249 and a recovery in the EURUSD chart before considering the long side.
Band of Potential S/R =
1249 (min 1/2R) (125.46 SPY)
down to
1244 (35dy poc) (123.82 SPY)
ST Sentiment: My version of the Rydex Assets Ratio was down at 2.53 (from 2.71). Last week’s highest ratio at 2.96 was a 65dy high.
Supporting Charts (+ or – or ? for equities).
– EURUSD: broke below the 1.3635 poc putting it back in a weak price location. Momentum down for eleven days.
– Dollar Index: prints above the major level at 76.27 (1/2R off the May low) and above the 77.05 min poc. Momentum up for eleven days.
? TLT: pre-open prints above the 5mnth poc at 116.34 and just above the minor 1/2R off Oct high at 117.42. Momentum up for eleven days.
imo these charts are starting to align themselves negatively for equities.
