S&P 500 emini pre-open Tuesday 11th November

posted 07.45 a.M. EST

Monday’s session generated a higher, narrower Value Area on low Volume.
Significant Selling has not been marked for twenty days. Technical oscillators approach overbought territory, e.g. SPY RSI(14) at 69 is a four month high. I have projected LT Resistance a little above or below 2040 and if this going to be a problem we will see an obvious Reaction from the Sellers around that level. But in the abscence of that and as long as ES holds above 2009.00 it is in a strong ST price location. Breadth numbers are also supportive in the ST, see below, but Sentiment indicators have seen rapidly increasing optimism which could become a problem.

ES First Level Support = 2009.00 (min poc)
ES Second Level Support = 1962.00 (6mn poc Dec contract)

Stocks>50dyma numbers: Nyse 68% (from 67%), Nasdaq 62% (from 60%), R2000 72% (from 70%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 9.08. Last week the ratio reached 10.00 and there are only six ratios above 10 in the database, the highest being 10.47 on 07/29. The ratio has risen fast indicating the public have moved strongly back into the market. We need to watch this closely.

Supporting Charts: UNCHANGED
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: printed a new four year high on Friday.
Gold GLD: Last week printed its lowest level since April 2010.
Oil USO: Last week printed its lowest level since May 2009.
EURUSD:Last week printed a new two year low. There is Support at 1.2300