posted 9.29 a.m. et
Pre-open comment Wednesday 23rd November
ES Momentum is weak and %Stocks>50dyma numbers for both Nyse and Nasdaq are less than 50 which is a further indication of weakness.
Overnight ES has printed a 28day low 1166.75. If ES is printing below 1178.50 (1/2R off Oct low) post-open it is in a very weak price location and I would expect further weakness.
Second Level Resistance = 1214.50 1/2R off May high, (SPY 122.30)
First Level Resistance = 1189 (poc – see eBook), SPY 119.45 (poc)
First Level S/R = 1178.50 1/2R off Oct low, (SPY 118.42)
ST Sentiment: My version of the Rydex Assets Ratio was higher again at 2.67 (from 2.36). It looks as those the Rydex traders regard the weakness so far this week as opportunity and, as I said pre-open yesterday, this “is not usually ST Bullish”. Rydex Bear Fund assets that I follow are down 10% this week. Also the ISEE (equity-only) index came in at 202 which is the highest single reading since 10th October.
Supporting Charts (+ or – or ? for equities).
– EURUSD: Printed a 33day low today. Recently broke below the 1.3635 poc putting it back in a weak price location. Momentum down for seventeen days.
– Dollar Index: Printed a 30day high today. Prints above the major level at 76.27 (1/2R off the May low) and above the 77.05 min poc. Momentum up for seventeen days.
– TLT: Printed a 34day high today. Prints above the 5mnth poc at 116.34 and above the minor 1/2R off Oct high at 117.42. Momentum up for seventeen days.
imo these charts have a negative bias for equities.
