pre-open comment Wednesday 7th November
Tuesday’s session generated a higher, wider Value Area on increased Volume but still no Significant Buying to mark. ES overnight high was 1431.75 which again was a test of the 1/2R off the Sep high at 1431.25 but that probe higher was rejected again and pre-open ES has printed below yesterday’s session low.
%Stocks>50dyma numbers: Nyse 56; Nasdaq 41.
Second Level Resistance = 1435.00 (50dy poc)
First Level Resistance = 1431.25 (1/2R off Sep high)
First Level Support = 1408.00 (6mn poc)
Second Level Support = 1397.00 maj poc
Sentiment: My version of the Rydex Assets Ratio was slighty higher again at 3.85 (from 3.77). On 19th Oct the ratio printed 3.33, a 49day low.
Supporting Charts (+ or – or ? for equities).
(Momentum = daily PriceOsc)
– EURUSD: Currently the chart is printing below the maj poc Support at 1.2777. This is weak price location. Momentum is down.
– Dollar Index: Chart prints above 80.15, the proven Resistance, at a 40day high.
? TLT: currently prints between two major levels, the 5mn poc at 125.93 and the maj poc at 117.15. However, Momentum is up and pre-open TLT is holding above 121.64 the minor 1/2R off Sep low.
imo these charts have a negative bias for equities.
