S&P 500 emini pre-open Wednesday 5th November

posted 08.53 a.m. est

See yesterday’s comments. Buyers Reacted (green-at-bottom) on Tuesday. Significant Sellers have been absent now for sixteen days. The minor (25dy) poc migrated to 2009.00 and is now First Level Support. Chart is in a strong LT price location as long as it holds above 1962.00, the 6mn poc but see Sentiment (below).

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

Stocks>50dyma numbers: Nyse 61% (from 64%), Nasdaq 61% (from 62%), R2000 70% (from 71%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher again at 10.00. There are only six ratios above 10 in the database, the highest being 10.47 on 07/29. The ratio is rising fast indicating the public are moving strongly back into the market. We need to watch this closely.

Supporting Charts:
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: has printed a new four year high today.
Gold GLD: Lower pre-open today to its lowest level since April 2010.
Oil USO: The potential Support at 34.17 (1/2R off 2009 low) was broken last month and chart has been sharply lower from there. On Tuesday chart printed its lowest level since May 2009.
EURUSD: On Monday printed a new two year low. There is Support lower at 1.2300