S&P 500 emini pre-open Wednesday 12th November

posted 09.18 a.m. est

Tuesday’s session generated an overlapping, narrower Value Area with Volume low and lower for the fourth consecutive day. See yesterday’s comments. Sellers did not React as ES approached 2040 and Significant Selling has not been marked for twenty one days.
Pre-open ES has printed below Tuesday’s session low and tested 2027. As long as ES holds above 2009.00 it is in a strong ST price location.

ES First Level Support = 2009.00 (min poc)
ES Second Level Support = 1962.00 (6mn poc Dec contract)

Stocks>50dyma numbers: Nyse 69% (from 68%), Nasdaq 62% (from 62%), R2000 72% (unch). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was slightly higher at 9.22. Last week the ratio reached 10.00 and there are only six ratios above 10 in the database, the highest being 10.47 on 07/29. The ratio has risen fast indicating the public have moved strongly back into the market. We need to watch this closely.

Supporting Charts: UNCHANGED
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: printed a new four year high on Friday.
Gold GLD: Last week printed its lowest level since April 2010.
Oil USO: Last week printed its lowest level since May 2009.
EURUSD:Last week printed a new two year low. There is Support at 1.2300