posted 9.00 a.m. est
pre-open comment Thursday 8th November
Following the rejection of Wednesday’s overnight probe of the 1431.25 Resistance (1/2R off the Sep high) ES was sharply lower during the day session. Wednesday’s poc was 1397 (also the maj poc) so yesterday this level was accepted rather than act as Support and pre-open today ES is printing below the poc which is weak price location. Breadth is also weak. e.g. Nyse %Stocks>50dyma number fell from above 50 to 41. There are plenty of reasons to remain cautious here. There would need to be much technical improvement before I could consider new longs – see Monday’s highlighted comments.
Second Level Resistance = 1431.25 (1/2R off Sep high)
First Level Resistance = 1408.00 (6mn poc)
Potential Support/Resistance today = 1397.00 maj poc
Sentiment: My version of the Rydex Assets Ratio was slighty lower at 3.56 (from 3.85). On 19th Oct the ratio printed 3.33, a 49day low.
Other Key Charts: There is maj poc Support at IWM 79.00 and XLK 28.16
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Currently the chart is printing below 1.2777, the maj poc Support at a 40dy low. This is weak price location. Momentum is down.
– Dollar Index: Chart prints above 80.15, the proven Resistance, at a 40day high.
? TLT: currently prints between two major levels, the 5mn poc at 125.93 and the maj poc at 117.15. However, Momentum is up and pre-open TLT is holding well above 121.64, the minor 1/2R off Sep low.
imo these charts have a negative bias for equities.
