posted 9.13 a.m. est
pre-open comment Monday 3rd December
ES closed the week above the high of Mon-Wed Hi-Lo Range. This indicates Buyers Active for the second week on this timeframe.
Breadth: Nyse Market Chart turned positive, Nasdaq turned neutral (from negative). UK turned positive.
%Stocks>50dyma numbers: Nyse 56% and Nasdaq 46%. Numbers >50 are supportive.
Last week’s price action was postive. Our Second Level Support at the 1397 poc was tested and rejected on Wednesday and our First Level Support at the 1408 poc was tested and rejected the following day (see Friday’s comments). Significant Selling marked below the 1397 major poc would indicate lower but imo the analysis is more positive and Buyers are in control of the dayframe.
Price Location has improved. 1/2R levels for the major equity ETFs: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95
Pre-open all four charts print above these levels. Price holding above these levels indicates strength.
First Level Resistance = ES 1435 (3mn poc)
First Level Support = ES 1408 (6mn poc)
Second Level Support = ES 1397 (maj poc)
Sentiment: My version of the Rydex Assets Ratio ended the week at 2.97. On Friday 16th Nov the ratio reached 2.57 which was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Has today printed a 26day high. Resistance at 1.3117 (24mn poc) may come into play again here – chart failed at this level in September and again in October.
+ Dollar Index: Chart now prints below 80.15 which is weak price location.
+ TLT: Chart now prints below 125.13 (1/2R off July high) which is weak price location.
imo these charts imply a positive bias for equities.
