Pre-open comment Friday 3rd December
Aggressive Buying (green-at-top) was marked on Thursday. That’s the first Significant Buying marked since 3rd November and means that short trades are eliminated for me until Significant Selling is marked again. Green-at-top highs are usually (80% of the time) tested within a day or two.
The November high has been exceeded pre-open and that means that the 1/2R off the November high is no longer a relevant level. Therefore I am moving First Level Support to the very minor poc at 1204.50 for today.
LT Sentiment: The AAII (public) poll showed a slight increase in both Bulls% and Bears% which left the nett just a little higher this week at 23.5 (the six month high is 29.6, reached five weeks ago).
ST Sentiment: My version of the Rydex Assets Ratio was up again from 2.43 to 2.6.
The ISEE (equity-only) index closed at 296 which is another very high number following Wednesday’s extreme 327. The 10dayma reached its highest level since the April price high.
Supporting Charts –
+ EURUSD: Price Osc turned up on Thursday and chart currently prints above the 1/2R off the June low at 1.3087
+ UDX: Price Osc turned up on Thursday and chart currently prints below the 80.15 major 1/2R
? TLT: 10day low today is on the 95.33 poc. If TLT breaks below this major poc it would be a further positive for equities.
Further Dollar weakness indicated by price location which should be positive for equities.
