pre-open comment Monday 26th November
Last week I marked Significant Buying once and no Significant Selling. On Friday ES auctioned higher to probe the band of Resistance between 1404 (1/2R) and 1408 (6mn poc). Friday’s Close was above Mon-Wed Hi-Lo Range which indicates Buyers Active on this timeframe.
Breadth: The ChartProfit Market Timing Charts stayed negative for all three Major Market Charts. %Stocks>50dyma numbers: Nyse 46; Nasdaq 35; UK 53. Numbers below 50% are not supportive.
Very tight band of important ES levels.
Six month poc = 1408; 1/2R off Sep high = 1404; major poc = 1397
Other KEY charts. Last week’s Key charts SPY and IWM retraced back above their important poc levels.
Key Support/Resistance levels for the index ETFs below –
SPY: Support 137.22 (12mn poc). Resistance 141.40 (1/2R) – time spent above this level would be a further sign of strength.
IWM: Support 79.00 (maj poc). Resistance 81.55 (1/2R) – time spent above this level would be a further sign of strength.
QQQ: Support/Resistance 64.84 (15mn poc) – time spent above this level would be a further sign of strength.
DIA: 130.25 (12mn poc) – time spent above this level would be a further sign of strength.
Sentiment:My version of the Rydex Assets Ratio ended the week at 2.97. On Friday 16th Nov the ratio reached 2.57 which was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Chart is currently printing above 1.2917, the 1/2R Resistance off Sep high.
? Dollar Index: At the end of last week stalled at 80.15 Support. Time below this level would indicate further weakness.
? TLT: At the end of last week stalled at the 123.96 poc Support. Time below this level would indicate further weakness. Time above 125.13 (1/2R) would indicate further strength.
Supporting charts at key levels. Let’s give it a day or two and see if Dollar Index or TLT break Support.
