pre-open comment Tuesday 13th November
Monday generated a narrow Value Area within Friday’s Value Area and low Volume. No immediate follow through to last week’s weakness but positives are hard to find at the moment. Bulls would hope the Key Chart Support levels hold (see below).
Dayframe: The minor 10dy poc migrated down to 1378.50. This is minor Resistance on this timeframe.
Key Charts/Levels: The following charts print very close to their important pocs. imo Time spent below these levels would indicate further market weakness.
SPY 137.22 (12mn poc) – IWM 79.00 (maj poc) – XLK 28.16 (maj poc).
Second Level Resistance = 1408.00 (6mn poc)
First Level Resistance = 1397.00 maj poc
Sentiment: My version of the Rydex Ratio was unchanged 2.95. This is its lowest level since 19th June.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Currently the chart is printing below 1.2777, the maj poc. This is weak price location. Momentum is down.
– Dollar Index: Chart prints above 80.15, the most important level on this chart. This is strong price location.
– TLT: TLT currently prints above 123.96, the 9month poc, which is strong price location. printed a two month high on Monday.
imo these charts have a negative bias for equities.
