Pre-open Wednesday 3rd November
Tuesday’s Value Area was very narrow but held in the area of 1190 which was the level that previously attracted Responsive Selling. Acceptance at this higher level would usually be a bullish indication but let’s be honest the market is marking time here ahead of the announcement later today. ST direction is the flip of a coin but in the longer term let’s see if ES is holding above 1178 after the dust settles.
First Level support = 1178 (30dy poc)
ST Sentiment: My version of the Rydex Assets Ratio was down slightly at 2.24 from Monday’s 2.28 (the highest since early May). ISEE (equity only) index came in at 211. Four of the last six days have been above 200.
Supporting Charts
– USDJPY: new low for this chart on Monday.
+ EURUSD: Major 1/2R at 1.3965 (off the 2008 high) in play. Chart currently printing above that level.
? UDX: there’s been little bounce from the ten month low set on the 15th October but Price Osc up for fourteen consecutive days.
? TLT: chart still in weak location with confirmed lower high and lower low. However, today chart prints above the minor poc at 101.12. Consolidation above this level would be a minor sign of strength.
imo these charts are too mixed to imply a bias for equities.
