Pre-open Monday 23rd November
Unusually I marked no Significant Buying or Selling last week. This lack of directional influence is seen in the internals as well with the Breadth system for the major market charts showing neutral.
The Rydex timers seemed to be quite upbeat about the gap down from Thursday and there was no panic registered in my Rydex indicators or in the VIX. This is not usually bullish for the market.
On the plus side ES has spent the last two weeks consolidating above the 1063/64 poc which I said would be a sign of strength in the longframe.
With this week being Thanksgiving week it is very possible that we’ll see low volatility over the next few days. With that in mind I’d like to see some strong directional conviction before assuming ES has eatablished a trend for the week. A break above last week’s poc at 1106 or below the previous week’s poc at 1089 would be a clue.
The EURUSD held above its support trendline last week and is higher today. Pre-open there is dollar and bond weakness with early-in-the-week strength in the European indices. ES has printed as high as 1104.
