Pre-open comment Thursday 2nd December
ES gapped up on Wednesday (I hate gaps) above the 1/2R off November high (dashed) and held through the session. This puts ES in a stronger price location if it holds. Have still not marked Significant Buying activity.
First Level Support 1/2R off November high, 1197.75
ST Sentiment: My version of the Rydex Assets Ratio was up from 2.37 to 2.43. The ISEE (equity-only) index closed at 327 which is extreme. I only have one day which was higher in my database and that was about a week before the top in April. Public were buying more than three Calls to every Put yesterday.
Supporting Charts –
? EURUSD: important chart. Price Osc down for eighteen consecutive days and currently prints close to the 1/2R off the June low at 1.3087
Big question – can EURUSD consolidate above this level?
– UDX: also an important chart. Printed a new 50dy high this week. Price Osc up for eighteen consecutive days. 80.15 is a major 1/2R – chart currently prints above this level.
Big question – can Dollar Index consolidate above this level?
– TLT: Chart has held above the 95.33 poc for ten days but today has printed a five day low close to that level.
Big clue for equities will be either:
EURUSD holds above 1.3087 and UDX declines back below 80.15 or
EURUSD declines back below 1.3087 and UDX holds above 80.15
