S&P 500 emini pre-open Monday 10th November

posted 09.12 a.m. est

Significant Buying was marked twice lat week. Significant Selling has not been marked for nineteen days. On Tuesday the minor poc migrated to 2009.00and this First Level Support held for the rest of the week. Price below 2009 would be the first sign of weakness in the ST. Breadth numbers are supportive in the ST, see below, but Sentiment indicators have seen rapidly increasing optimism which could become a problem, see below.

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

Breadth: CP Market Timing System remained neutral for Nyse & R2000 and turned positive for Nasdaq. UK turned back to negative.
Stocks>50dyma numbers: Nyse 67%, Nasdaq 60%, R2000 70%, UK 58%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 9.33. 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 Friday.
Gold GLD: Last week printed its lowest level since April 2010.
Oil USO: Last week printed its lowest level since May 2009.
EURUSD:Last week printed a new two year low. There is Support at 1.2300