Technical analysis – Market pre-open 1st December
ES has been consolidating for seven days having stalled at the 2094 maj poc. Bulls would want to see price above this level and the likely volatility we’ll see later in the week with the ECB decision and U.S. jobs data, could resolve the matter.
Potential area of S/R is 2087.00 (5mn poc) to 2094.00 (maj poc)
Second Level Support = 1971.00 = 1/2R off this year’s high
Stocks>50dyma numbers: Nyse 63% (from 64%), Nasdaq 63% (unch), R2000 66% (from 67%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 8.38, close to the ratio on 11/11, at 8.41 which was a 57day high.
Supporting Charts:
Bonds TLT/IEF : on Monday TLT again probed the Resistance at 121.40 but so far has printed no time above this level. IEF, the 7-10 yr ETF, recently found Support at 105.00 it’s maj poc Support, and has rallied. Good chart to monitor.
Dollar Index: ion Monday printed its highest level since the March high. Lower today.
Gold GLD: printed a new five year low last week. Very weak price location.
Oil USO: I need to see USO printing above 14.28, the 1/2R off August low before considering the loing side. Currently in a weak price location.
EURUSD: on Monday printed its lowest level since April.
