S&P 500 emini pre-open Tuesday 4th November

posted 09.08 a.m. est

Buyers have stalled above 2000 looking for a Response from the Sellers who have been absent for fifteen days now. If Sellers do not React soon Buyers will resume. Chart is in a strong price location as long as it holds above 1962.00, the 6mn poc but see Sentiment (below).

ES First Level Support = 1962.00 (6mn poc Dec contract)
ES Major Support = 1872.00 (maj poc) eq SPY = 187.68

Stocks>50dyma numbers: Nyse 64% (from 65%), Nasdaq 62% (from 61%), R2000 71% (unch). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher again at 9.85. There is only twelve ratios higher than this in the database, the highest being 10.47 on 07/29. The ratio is rising fast indicating the public are moving strongly back into the market. We need to watch this closely.

Supporting Charts:
Bonds TLT: spiked violently higher recently to a two year high followed by a sharp reaction from there. But as long as chart holds above 117.14 (maj poc) it is in a strong price location in the LT.
Dollar Index: has printed a new four year high today.
Gold GLD: Last week printed its lowest level since April 2010 after breaking the recent chart Support lows.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken last month and chart has been sharply lower from there. Pre-open today has printed its lowest level since May 2009.
EURUSD: On Monday printed a new two year low. There is Support lower at 1.2300