pre-open comment Tuesday 27th November
Monday’s session generated an “inside” Value Area. Overnight high of 1407.75 is a probe into the six month poc at 1408. Price printing time above 1408 would be an indication of strength and Significant Buying marked above 1408 would indicate higher.
%Stocks>50dyma numbers for Nyse and Nasdaq remain below 50. Numbers above 50 are supportive.
First Level Resistance = 1408 (6mn poc)
First Level Support = 1397 (maj poc)
Key Charts (see Monday’s comments) QQQ now prints above 64.84 (15mn poc) time spent above this level would be a further sign of strength.
Sentiment:My version of the Rydex Assets Ratio was lower at 2.82. Market has been higher over the last three days with the ratio falling; this is usually ST bullish. On Friday 16th Nov the ratio reached 2.57 which was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Key Chart. Chart is currently printing above 1.2917, the 1/2R Resistance off Sep high.
? Dollar Index: Key Chart. At the end of last week stalled at 80.15 Support and is currently holding above that level. Time below 80.15 would indicate further weakness.
? TLT: Key Chart. At the end of last week stalled at the 123.96 poc Support. Time below this level would indicate further weakness. Time above 125.13 (1/2R) would indicate further strength.
Supporting charts at key levels. Watching to see if Dollar Index or TLT break their Support.
