S&P 500 emini pre-open Friday 21st November

posted 09.10.a.m. est

No Significant Selling has been marked since the mid-October low. They were offered opportunity for nine days when Buyers were not marked but they did not take it, see Monday’s comments. That gave Buyers confidence and they Reacted (green-at-bottom) on Thursday immediately after the Open and just above 2035.00, our First Level Support. First sign of weakness would be price printing below that level. Pre-open today ES has spiked sharply higher and indices will open with gaps. Note the Rydex ratio a new extreme level (see below).

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

Stocks>50dyma numbers: Nyse 68% (from 69%), Nasdaq 58% (from 63%), R2000 64% (from 69%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio reached 11.44, the highest level in the database. There has been a recent surge in inflows into Bull Funds their collective assets have reached a new high. Historically this kind of urgent lop-sided activity by retail traders has been a warning for the market.

Supporting Charts:
Bonds TLT: spiked violently higher in October to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: printed a four year high on last week.
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: On Wednesday chart printed its lowest level since 2009.
EURUSD: recently printed a two year low. There is Support at 1.2300