S&P 500 emini pre-open Monday 3rd November

posted 09.14 a.m. est

Significant Buying has been marked seven times in the last twelve days and no Significant Selling has been marked for fourteen days. ES was auctioned to a new high on Friday. Chart is in a strong price location as long as it holds above 1962.00, the 6mn poc.

ES First Level Support = 1962.00 (6mn poc Dec contract)
ES Major Support = 1872.00 (maj poc) eq SPY = 187.68

Breadth: CP Market Timing System turned neutral (from negative) for Nyse, Nasdaq & R2000. UK turned positive (from negative).
Stocks>50dyma numbers: Nyse 65%, Nasdaq 61%, R2000 71%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 9.5 which is up strongly from 5.13 (a six montyh low) on 10/16, just ten days ago, The highest ratio in the database being 10.47 on 07/29. The ratio is rsing 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: has printed a new four year high today.
Gold GLD: Last week printed its lowest level since April 2010 after breaking the recent lows (chart Support).
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken last month and chart has been sharply lower from there to its lowest level since June 2012.
EURUSD: has today printed a new two year low. There is Support lower at 1.2300