pre-open comment Friday 29th November
Momentum for all four stock index ETFs is now positive and up.
ES: Wednesday generated an overlapping/higher Value Area consolidating for the third day above 1800. First sign of ST weakness would be Effective Selling marked below the minor poc at 1789.00 and the LT weakness would be indicated by Effective Selling being marked below the 1758.50 poc.
First Level ST Support = 1789.00 (16dy poc)
First Level LT Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 65% (from 64%), Nasdaq 67% (from 65%), R2000 71% (from 69%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.97. Last week the ratio reached 5.2 which was the highest since 5.43 at the market May high.
Supporting Charts
Bonds TLT: Last week reached its lowest since the August low. Has bounced but still in a weak price location below 106.31, the 8mn poc. Momentum (although negative) is up.
Gold GLD: On Monday reached its lowest level since early July. Still in weak price location. Momentum (although negative) is up.
Oil USO: Consolidated for four weeks in a weak price location below 34.13, (3yr poc) and broke lower this week to its lowest level since June.
Dollar Index: The last four weeks have been spent back in a stronger price location above the important level at 80.15 but momentum (although positive) is down.
EURUSD: Last week probed, but held, the Support at 1.3416 (1/2R off 2010 low) and has rallied from there to a four week high.
