S&P 500 emini pre-open Friday 7th November

posted 09.12 a.m. est

During Thursday’s session ES again held First Level Support at 2009.00, the minor poc. Later in the day, Aggressive Buying (green-at-top) was marked as ES printed a new high. Significant Sellers have been absent now for eighteen days. Sentiment indicators are showing rapidly increasing bullishness – more in today’s webcast.

ES First Level Support = 2009.00 (min poc)
ES Second Level Support = 1962.00 (6mn poc Dec contract)

Stocks>50dyma numbers: Nyse 66% (from 64%), Nasdaq 61% (from 60%), R2000 70% (unch). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was slightly lower at 9.66. Tuesday’s ratio was 10.00 and there are only six ratios above 10 in the database, the highest being 10.47 on 07/29. The ratio has risen fast indicating the public are moving strongly back into the market. We need to watch this closely.

Supporting Charts:
Bonds TLT: spiked violently higher recently 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 new four year high on Thursday.
Gold GLD: On Wednesday printed its lowest level since April 2010.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken last month and chart has been sharply lower from there. On Tuesday chart printed its lowest level since May 2009.
EURUSD: Has today printed a new two year low. There is Support lower at 1.2300