posted 07.22 a.m. est
pre-open comment Monday 12th November
Breadth is not supportive. The ChartProfit Market Timing Charts stayed negative for Nyse and Nasdaq and turned negative for UK. %Stocks>50dyma numbers: Nyse 31; Nasdaq 27; UK 52. Numbers below 50% are not supportive.
Friday’s Close was below Mon-Wed Hi-Lo Range which indicates Sellers Active on this timeframe. Price location on most charts is weak but…
SPY and IWM are the Key Charts this week because they did not break their major Support levels last week (see charts in eBook). Therefore I will be monitoring these two closely. Time spent below SPY 137.22 and IWM 79.00 would be the clue.
Thursday’s red-at-bottom low was tested on Friday. Red-at-bottom lows are usually broken within a day or two. Significant Buyers have been absent since 15th Oct.
Second Level Resistance = 1408.00 (6mn poc)
First Level Resistance = 1397.00 maj poc
Sentiment: On Friday there was a marked change in my version of the Rydex Ratio which fell sharply to its lowest level since 19th June – this might be an early indication that sentiment is changing and maybe we’ll see more evidence next week. However, three out of four Consensus polls that we follow actually showed a decrease in Bearishness last week.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Currently the chart is printing below 1.2777, the maj poc. This is weak price location. Momentum is down.
– Dollar Index: Chart prints above 80.15, the most important level on this chart. This is strong price location.
– TLT: The 9month poc migrated to 123.96. TLT currently prints above 123.96, the 9month poc, which is strong price location.
imo these charts have a negative bias for equities.
