posted 08.35 a.m. est
pre-open comment Friday 22nd November
Both Significant Buyers and Sellers are active but the Sellers, as already noted have not been Effective (see yesterday’s highlighted comments). Wednesday’s red-at-bottom low was not tested on Thursday which is unusual and in fact Wednesday’s high was exceeded on Thursday negating any ST negative implications of that imbalance. Aggressive Buying was marked on Thursday and until Sellers can mark an Effective Response I have to assume Buyers remain in control of tghe dayframe. In any event, as per Monday’s comments, only Significant Selling marked below 1758.50 would have negative implications for the longer timeframe.
Dayframe: The minor (12day) poc is now at 1789 and may be Support/Resistance in the ST.
ST Support = 1758.50 (45dy poc)
LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 64% (from 60%), Nasdaq 61% (from 55%), R2000 65% (from 56%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.2 which is the highest since it reached 5.43 at the market May high.
Supporting Charts
Bonds TLT: on Thursday reached its lowest since the August low and very close to that level.
Gold GLD: on Thursday reached its lowest level since early July. Momentum is negative and down.
Oil USO: Has consolidated for three weeks in a weak price location below 34.13, (3yr poc) but has not yet broken down.
Dollar Index: The last three weeks have been spent back in a stronger price location back above the important level at 80.15. Momentum (although positive) is down.
EURUSD: Has this week probed 1.3416 (1/2R off 2010 low) and is now attempting to rally off that Support. Momentum (although negative) is up.
