posted 09.10 a.m. est
pre-open comment Tuesday 26th November
Monday generated a higher, narrower Value Area on low Volume.
Momentum for all four stock index ETFs is now positive and up.
First sign of ST weakness would be Effective Selling marked below the minor (15day) poc at 1789 and the LT weakness would be indicated by Effective Selling being marked below the 1758.50 poc.
First Level LT Support = 1758.50 (46dy poc)
Second Level LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 64% (from 66%), Nasdaq 63% (from 62%), R2000 66% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.74. Last Thursday’s ratio at 5.2 was the highest since it reached 5.43 at the market May high.
Supporting Charts
Bonds TLT: Last week reached its lowest since the August low. Has bounced but still in a weak price location below 106.31, the 8mn poc. Momentum although negative is up.
Gold GLD: On Monday reached its lowest level since early July.
Oil USO: In its fourth week consolidating in a weak price location below 34.13, (3yr poc).
Dollar Index: The last four weeks have been spent back in a stronger price location above the important level at 80.15. Momentum (although positive) is down.
EURUSD: Last week probed, but held, the Support at 1.3416 (1/2R off 2010 low). Momentum (although negative) is up.
