posted 08.48 a.m. est
pre-open comment Wednesday 6th November
Significant Buyers Responded on Tuesday (green-at-bottom), suggesting that Buyers are still in control of the dayframe, see Tuesday’s highlighted comment. New short trades are eliminated for me at least until Significant Selling (red) is marked again. Also the minor poc migrated higher to 1757.50, as I thought it might, see Monday’s highlighted comment. Should price break back below this (now) Support it would be in a ST weak price location. The ST negative is the fact that Momentum (although positive) is now falling for all four Stock Index ETFs and my Momentum indicator (PriceOsc) has a habit of returning to the zero line after it has fallen for a couple of days from a positive reading.
First Level Support = 1757.50 (minor 37dy poc)
Second Level LT Support = = 1685.50 poc
Stocks>50dyma numbers: Nyse 70% (from 75%), Nasdaq 61% (from 62%), R2000 64% (from 67%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.1, the highest ratio since May 28th. The ratio reached as high as 5.43 at the market May high and as low as 2.15 on 07/10 (which was the lowest ratio since January 2012).
Supporting Charts
Bonds TLT: Sharply lower on Tuesday. Has been in a weak price location since it fell below 107.18, the 8mn poc, at the end of last week. Momentum (although positive) turned down.
Gold GLD: Below 134.17, the 12mn poc, in a weak price location. Sold off to the Support at 126.11, 1/2R off June low – price below this level would be weaker location still.
Oil USO: Closed on Tuesday below the Support Band which is 34.17 = 1/2R off 2009 low and 34.13 = 3yr poc. This is weaker price location still.
Dollar Index: Back in a stronger price location above the important level at 80.15.
EURUSD: Sharp sell off at the end of last week with Support a little lower at 1.3416, the 1/2R off 2010 low.
