Pre-open Thursday 4th November
Wednesday’s Value Area was overlapping/wider and once again held in the area of 1190 which was the level that previously attracted Responsive Selling. A volatile day (although not so much as some were expecting). There was a probe down to just above the First Level Support at 1178 and then a rally to a strong close with Aggressive Buying (green-at-top) being marked again.
ES will open the session higher. We still await an Effective Response from the Sellers. There’s been no Aggressive Selling (red-at-bottom) marked since early September and the last time Effective Selling was marked was 11th August.
First Level support = 1190.50 (minor 3day poc)
Second Level support = 1178 (30dy poc)
ST Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 2.25. Monday’s ratio at 2.28 was the highest since early May. ISEE (equity only) index came in at 203. Five of the last seven days have been above 200.
Supporting Charts
? USDJPY: consolidating near the recent lows.
+ EURUSD: Has broken above the recent consolidation (centred around the Major 1/2R at 1.3965) to the highest level since late January.
+ UDX: New low for 2010 today for the dollar index
+ TLT: chart still in weak location with confirmed lower high and lower low.
these charts have a positive bias for equities.
