posted 08.28 a.m. est
pre-open comment Friday 8th November
Sellers Responded (red-at-top) for a second time above 1770 and a probe above last week’s high was rejected. Later in the day Aggressive Selling (red-at-bottom) was also marked and this was below the minor poc at 1757.50 which puts ES in a ST weak price location (see Wednesday’s highlighted comments. New long trades are now eliminated for me at least until Significant Buying (green) is marked again. Momentum (PriceOsc) continues down for all four Stock Index ETFs. Breadth numbers fell for third consecutive day (see below). Some Sentiment measures are reaching excessive levels, more in webcast.
First Level Resisatnce = 1757.50 (40dy poc)
First Level LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 60% (from 69%), Nasdaq 53% (from 59%), R2000 55% (from 62%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.63. Tuesday’s ratio at 5.1 was the highest since May 28th. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: The 8mn poc is now at 106.31 and TLT is currently in a weak price location below that level. Momentum (although positive) is down.
Gold GLD: Below 134.17, the 12mn poc, in a weak price location. Sold off to the Support at 126.11, 1/2R off June low but has not broken it so far. Price below this level would be weaker location still.
Oil USO: Currently printing just below the low of the Support Band which is 34.17 = 1/2R off 2009 low and 34.13 = 3yr poc.
Dollar Index: Back in a stronger price location above the important level at 80.15.
EURUSD: recovered a little today and prints almost at the Support at 1.3416, the 1/2R off 2010 low. Momentum is down and negative.
