posted 9.20 a.m. est
Pre-open comment Tuesday 16th November
Early in Monday’s session First Level Support at 1197.5 held good for a morning rally which was retraced later in the day as ES closed near the low of the session at Friday’s poc. Overnight this minor support also gave way and ES has printed as low as 1186.50. Sellers appear to be in control of the dayframe and I will assume lower until Buyers are marked again.
First Level Resistance = 1197.5 (minor poc)
I am assuming lower especially if ES builds Value below that level.
First Level Support = 1178 poc
ST Sentiment: My version of the Rydex Assets Ratio was down again from 2.67 to 2.34. Bull Fund assets that I follow were down 7% and Bear Fund assets up by only 4%. That’s not enough Bears to suggest this sell-off is over. The ISEE (equity-only) index came in with another high number, 230, which lifted the 10day ma to a new six month high.
Supporting Charts –
– EURUSD: Most important chart to watch imo. Today the chart printed its lowest level since late September.
– UDX: Today the chart printed its highest level since Oct 1st. Currently trying to consolidate a breakout above the mid/late October highs.
? TLT: has been lower over last few days with the market. Unless the inverse relationship that has existed between bonds and equities is becoming unreliable I would expect one or the other to rally soon. Currently I favour bonds especially if TLT can build some value back above the 95.33 poc.
imo these charts have a negative bias for equities.
