posted 09.20 a.m. est
pre-open comment Thursday 14th November
On Wednesday ES opened below ST Support at 1758.50 (40dy poc) and Buyers Responded immediately (green-at-bottom), see yesterday’s highlighted comments. Later in the day Aggressive Buying was also marked (green-at-top). An “outside” Value Area was generated. Buyers are active and as long as ES holds above 1758.50 it is in a strong price location. A further positive would be Momentum (PriceOsc) turning back up for the Stock Index ETFs.
ST Support = 1758.50 (40dy poc)
LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 66% (from 61%), Nasdaq 60% (from 57%), R2000 63% (from 59%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.1 matching last week’s high 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: closed 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.
