posted 09.18 a.m. est
pre-open comment Friday 15th November
ES progressed higher on Thursday following Wednesday’s double Buying imbalance. generated a higher Value Area. If there is a strong end to the week then Momentum (PriceOsc) for the four index ETFs could turn back up. Some LT Sentiment measures showed further increase in worryingly high optimism (more in webcast) but as long as ES holds above 1758.50 it is in a strong price location.
ST Support = 1758.50 (40dy poc)
LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 68% (from 66%), Nasdaq 59% (from 60%), R2000 62% (from 63%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.4, from previous day’s 5.1 which was the highest ratio since May 28th. The ratio reached as high as 5.43 at the market May high. VIX closed at a three month low.
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. Momentum is negative and down.
Oil USO: closed again 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 currently printing time back above 1.3416 (1/2R off 2010 low) which is encouraging for the Bulls but Momentum is still down and negative.
