pre-open comment Wednesday 27th November
Momentum for all four stock index ETFs is now positive and up.
ES: Tuesday generated an overlapping Value Area on low Volume.
First sign of ST weakness would be Effective Selling marked below the minor poc at 1789 and the LT weakness would be indicated by Effective Selling being marked below the 1758.50 poc.
Dayframe: Intraday only. A twelve day poc has emerged at ES 1803.5. In the very minor timeframe this may be useful to monitor for intraday S/R.
First Level LT Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 64% (unchanged), Nasdaq 65% (from 63%) R2000 69% (from 66%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 4.87. Last Thursday’s ratio at 5.2 was the highest since it reached 5.43 at the market May high.
Supporting Charts
Bonds TLT: Last week reached its lowest since the August low. Has bounced but still in a weak price location below 106.31, the 8mn poc. Momentum (although negative) is up.
Gold GLD: On Monday reached its lowest level since early July. Still in weak price location. Momentum (although negative) is up.
Oil USO: The consolidation in weak price location below 34.13, (3yr poc) that I have been pointing out for four weeks now looks to be playing out now. Price today has broken lower to its lowest level since June.
Dollar Index: The last four weeks have been spent back in a stronger price location above the important level at 80.15 but momentum (although positive) is down.
EURUSD: Last week probed, but held, the Support at 1.3416 (1/2R off 2010 low). Has today printed a 19day high. Momentum (although negative) is up.
