posted 08.47 a.m. est
pre-open comment Wednesday 13th November
Tuesday generated a lower, wider Value Area. The 40day poc migrated very slightly to 1758.50. ES needs to hold this level to remain in a ST strong price location and pre-open is printing below. The minor VAH is also slightly higher at 1768.50 (dashed) and currently price is having a problem printing time above that level. VAL is at 1737.50 (dashed), see Monday’s highlighted comments. Momentum (PriceOsc) continues down for all four Stock Index ETFs.
Dayframe: Time printed below 1758.50, especially 1754, could migrate the minor poc lower, which imo would not be constructive in the ST.
ST Support = 1758.50 (40dy poc)
LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 61% (from 64%), Nasdaq 57% (from 59%), R2000 59% (from 61%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.86. Last week the ratio reached 5.1 which 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). VIX is close to its three month low this week.
Supporting Charts
Bonds TLT: The 8mn poc is now at 106.31 and TLT is currently in a weak price location below that level. Chart was sharply lower at the end of last week. Momentum is negative and down.
Gold GLD: Broke Support at 126.11, 1/2R off June low at the end of last week. Weak price location and reached a four month low on Tuesday.
Oil USO: printing below 34.13, the 3yr poc, in a weak price location. Momentum (although negative) has turned up.
Dollar Index: Back in a stronger price location above the important level at 80.15.
EURUSD: Is attempting to recover back above 1.3416, the 1/2R off 2010 low. Bulls would want to see some time printed above that level. Momentum is down and negative.
