Pre-open comment Monday 14th November
Longframe:The Chartprofit Market Timing System is positive for all Major Market Charts. Friday closed within Mon-Wed range which does not indicate a bias.
%Stock/50dyma numbers for both Nyse and Nasdaq are well above 50 which is supportive. Price location for the four index ETFs is strong – above 1/2R off May high.
Dayframe: Daily momentum for the four major index ETFs remains down. Bulls would want to see momentum turning up and EURUSD hold Support (see below).
There is a band of Support between the 35dy poc at 1244 and the 1/2R off May high at 1249. As I write, ES has printed as low as 1252 today.
Top of Support Band = 1249 (min 1/2R) (125.46 SPY)
Bottom of Support Band = 1244 (35dy poc) (124.35 SPY)
ST Sentiment: My version of the Rydex Assets Ratio ended the week at 2.71. Last Monday’s ratio at 2.96 was a 65dy high.
Supporting Charts (+ or – or ? for equities).
? EURUSD: On wednesday broke below the 1.3635 poc putting it in a very weak price location but recovered by the end of the week. Where this chart finds itself relative to that major poc over the next few days is critical to this analysis. As I write the low today is 1.3636. Momentum down for ten days.
– Dollar Index: prints above the major level at 76.27 (1/2R off the May low) and just above the 77.05 min poc. Momentum up for ten days.
? TLT: pre-open prints below the 5mnth poc at 116.34 and below the minor 1/2R off Oct high at 117.42. Momentum up for ten days.
imo these charts will align themselves positively or negatively for equities very soon. This will give a clear implication for the markets.
