Pre-open comment Tuesday 23rd November
Yesterday’s First Level S/R at 1197/98 proved resistance. When obvious levels provide resistance rather than support it indicates the ST bias is down. That area of price has been a problem for ES for the last threee sessions.
The most recent imbalance was Aggressive Selling (red-at-bottom) marked seven days ago on 11/12. If Sellers are still in control (and Resting) then I would expect an appearance soon with no Significant Buyers having been marked since that date.
Dayframe: If ES is weak then 1188.50-1189.50 would be the obvious area of Resistance today. That’s the 1/2R off last Tuesday’s low and the 6dy poc.
Consolidation above 1197/98 would suggest more strength than I’m expecting here.
First Level Support = 1178 (4month poc)
ST Sentiment: My version of the Rydex Assets Ratio was up from 1.92 to 2.06.
Supporting Charts –
– EURUSD: Most important chart to watch imo. Printing close to the 35day low is set last week. Price Osc down for eleven consecutive days.
– UDX: Printing close to the 35day high is set last week.
Price Osc up for eleven consecutive days.
? TLT: Trying to consolidate above the 95.33 poc and currently printed above previous nine daily highs.
imo these charts still have a negative bias for equities.
