Technical analysis – Market pre-open 16th November
Please read previous highlighted comments. I wrote in last Monday’s pre-open “Sellers have an opportunity at the start of this week – let’s see if they make a mark”. AS it turned out Aggressive Selling was marked twice last week and Thursday’s and Friday’s Value Areas were printed entirely below the 2063 poc. There is support at 1971.00 (1/2R) but Sellers are in control here and I would want to see Effective Buying (green) marked before considering the long side. Breadth has deteriorated, see below.
Key Charts: Momentum, although positive, is down for all four major stock index ETFs. Key chart IWM closed the week below 115.35, its maj poc.
First Level Resistance = 2063.00 (5mn poc)
First Level Support = 1971.00 = 1/2R off this year’s high
Market Charts: All major Market Charts are now negative.
Stocks>50dyma numbers: Nyse 46%, Nasdaq 50%, R2000 50%, U.K. 42%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 7.52. Wednesday’s ratio at 8.41 was a 57day high.
Supporting Charts:
Bonds TLT/IEF : Major Time Support is at TLT 117.14. IEF, the 7-10 yr ETF, found Support at 105.00 it’s maj poc Support. Good chart to monitor.
Dollar Index: last week printed its highest level since April.
Gold GLD: tested the July low last week and printed its lowest level since 2010.
Oil USO: earlier in the week was printing time below 14.28, the 1/2R off the August low, in a weak price location and then feel sharply at the end of the week.
EURUSD: printing below 1.11 (1/2R off this year’s low) in a weak price location.
