posted at 7.45 a.m. est
pre-open comment Tuesday 6th November
Monday’s session generated a lower, narrower Value Area on less Volume. No Significant Buying has been marked for thirteen days now. Sellers are still in control of the dayframe. On Friday the 1/2R level off the Sep high at 1431.25 was clear Resistance (see chart). That’s a little concerning as lower highs are often put in at these points when a trend has turned. ES printing above that Resistance would be a first minor sign of strength but DIA, QQQ, IWM are printing well below their equivalent levels.
Nyse%Stocks>50dyma number climbed slightly back above the 50 level. Nasdaq number is still in the 30s.
First Level Resistance = 1431.25 (1/2R off Sep high)
First Level Support = 1408 (6mn poc)
Second Level Support = 1397.00 maj poc
Sentiment: My version of the Rydex Assets Ratio was higher at 3.77 (from 3.59). On 19th Oct the ratio printed 3.33, a 49day low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
? EURUSD: As Monday, chart today has probed the maj poc Support at 1.2777. Time printed below this level would be weak price location. Momentum is down.
– Dollar Index: on Friday the chart spiked up to print above 80.15, the proven Resistance and Monday reached a 39day high. Again today it is holding this stronger price location.
? TLT: currently prints between two major levels, the 5mn poc at 125.93 and the maj poc at 117.15. However, Momentum is up and pre-open TLT is printing above 121.64 the minor 1/2R off Sep low.
imo these charts have a slight negative bias for equities which would be more so if the EURUSD chart were to break down below 1.2777.
