Pre-open comment Monday 28th November
Last week I marked two instances of Significant Selling and no Significant Buying. Breadth is not supportive. The Chartprofit Market Timing System is now negative for all Major Markets. And, the %Stocks>50dyma numbers for both Nyse and Nasdaq are less than 50; in fact for all Major Market Charts these numbers are at, or approaching, oversold levels.
ES is currently printing 3.5% up from Friday’s low and has probed the 1189 poc which is (30 minutes pre-open) the high (SPY high 30 minutes pre-open 119.49).
First Level S/R = ES 1189 (poc) SPY 119.45 (poc)
First Level Support = 1178.50 1/2R off Oct low, (SPY 118.42)
Sentiment: My version of the Rydex Assets Ratio finished the week at 1.61 which is a 32 day low and a lot lower than the recent peak at 2.96. Pre-open Wednesday I wrote “It looks as though the Rydex traders regard the weakness so far this week as opportunity and this is not usually ST Bullish”. But there was quite a change on Friday. Bear Fund Assets that I follow were up 19% and Bull Fund Assets down 10%.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Still in a weak position below the 1.3635 poc but up so far today.
– Dollar Index: Still in a strong position above the 77.05 poc but down so far today.
– TLT: Still in a strong position above the 116.34 poc but down so far today.
imo these charts have a negative bias for equities.
