S&P 500 emini pre-open Monday 24th November

posted 07.52 a.m. est

Firstly, please read last Monday’s comments highlighted on the graphic. On Monday last week a brief test below 2035, the minor poc, was rejected and ES rallied. Subsequently all Value Areas were printed above that level with Buyers Reacting on Thursday (green-at-bottom) and Sellers were then sought higher. On Friday ES opened sharply higher and Sellers Reacted (red-at-top). First sign of weakness would be price printing below 2035. The negatives are divergences between price and daily breadth indicators and the increasing bulls seen in the Sentiment data (particulary the Rydex ratio which has reached a new extreme).

ES First Level S/R = 2035.00 (min poc)
ES Second Level Support = 1962.00 (6mn poc)

Breadth: CP Market Timing System – Nyse turned positive. Nasdaq remained positive. R2000 remained neutral. UK remained positive.
Stocks>50dyma numbers: Nyse 75%, Nasdaq 63%, R2000 69%, UK . Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 11.97 which is the highest ratio in the database. Historically this has been a warning for the market.

Supporting Charts:
Bonds TLT: chart needs to hold above 117.14 (maj poc) to stay in a strong price location in the LT.
Dollar Index: printed a four year high on Friday.
Gold GLD: recently reached its lowest level since April 2010 but is rallying a little off that low. In the LT it is still in a weak price location below the 119.87 maj poc.
Oil USO: last week chart printed its lowest level since 2009.
EURUSD: is today printing close to the two year low set earlier in the month. There is Support at 1.2300