posted 9.09 a.m. et
pre-open comment Friday 30th November
During Thursday’s session a probe down into our First Level Support at the 1408 poc was rejected and a Value Area was generated above that level which is a positive. Significant Buying marked above 1408 would indicate further strength. Following Wednesday’s rejection of price below 1397 I think we can safely assume that if ES is set to make further progress here it will not print a complete Value Area back below that major poc (which would indicate weakness).
As mentioned, price location has improved for SPY and IWM with both printing above their 1/2R Resistance earlier this week but DIA and QQQ have (so far) found Resistance at their 1/2R levels which are DIA 130.45 and QQQ 65.95 .
%Stocks>50dyma numbers have Nyse back above 50 at 54% and Nasdaq 46%. Numbers >50 are supportive.
First Level Support = 1408 (6mn poc)
Second Level Support = 1397 (maj poc)
Sentiment: My version of the Rydex Assets Ratio was almost unchanged again at 2.90. On Friday 16th Nov the ratio reached 2.57 which was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Currently prints above 1.2917, the 1/2R off Sep high.
? Dollar Index: Early this month the chart rallied above its Key Level at 80.15. Having fallen back it is currently holding above this level but only just. Time below 80.15 would indicate further weakness.
? TLT: 9mnth poc migrated slightly higher to 125.50 and similar to the Dollar index, TLT is printing very close to its important Support/Resistance band which is now between 125.13-125.50. Also difficult to call though Momentum for both these charts is down.
Hoping to see a clearer bias for equities in these charts soon.
