posted 9.27 a.m. est
Pre-open Friday 5th November
Thursday session gapped up and held the higher levels with a strong close. Even in the minor timeframe ES is still finding support at the first, obvious levels – i.e. 1178 on Wednesday and pre-open today at yesterday’s poc (see below).
Dayframe: Micro S/R = 1213 (dotted). Thursday’s session gapped higher so this is the closest reference level I can mark of any importance at all. Note that ES found support here pre-open.
First Level support = 1190.50 (minor 4day poc)
ST Sentiment: My version of the Rydex Assets Ratio was down from 2.25 to 1.99 (Monday’s ratio at 2.28 was the highest since early May). ISEE (equity only) index came in at 247, the highest single reading since 18th August. Six of the last eight days have been above 200.
LT Sentiment: AAII (public) survey showed Bulls% at 48.2 which is down from 51.2 last week. Bears% is now 29.8, up from 21.6. This gives a nett of 18.4 (down from 29.6).
Supporting Charts
– USDJPY: consolidating near the recent lows.
+ EURUSD: Broke above the recent consolidation centred around the Major 1/2R at 1.3965. That level is now the obvious support level. Chart is weaker so far today. I understand that a lot of retail shorts have just covered which from a contrarian pov is not ST bullish.
+ UDX: New low for 2010 yesterday for the dollar index but is defiantly attempting tp rally today.
+ TLT: chart still in weak location with confirmed lower high and lower low. Lower today.
imo these charts have a positive bias for equities.
