posted 5.10 a.m. et
Pre-open comment Tuesday 8th November
Strictly applying my own rules I had to mark Aggressive Buying on Monday but only just as ES probed the top of the 3day range. The Value Area was overlapping so this was not Effective Buying. Even so, ES is holding well above the 35dy poc at 1224. The 1/2R off May high at 1249 becomes 1st Level Support and if ES is going to break higher this week I would expect that level to hold.
1st Level Support (minor) = 1249 (min 1/2R) (125.46 SPY)
2nd Level Support = 1224 (35dy poc) (121.35 SPY)
ST Sentiment: My version of the Rydex Assets Ratio was higher to 2.96 which is a 65dy high. This enthusiasm by the Rydex retail traders may become a problem if the ratio pushes higher.
Supporting Charts (+ or – or ? for equities). UNCHANGED
? EURUSD: has now broken back below the 1/2R off May 2008 high which is an important level at 1.3965 but found Support at the 1.3635 poc.
? Dollar Index: back above the major level at 76.27 (1/2R off the May low). In the ST strength would be indicated if chart could print some time above the 77.05 min poc.
? TLT: above the 5mnth poc at 114.56 but below the minor 1/2R off Oct high at 117.42.
imo in the ST we cannot get a useful idea of bias for equities from these charts.
