Technical analysis – Market pre-open 20th November 2015
Sellers were active intraday on Thursday but, similar to Tuesday, they were not Effective, generating a higher but very narrow Value Area. The VA was printed entirely above the 2063.00 poc and as long as ES holds above this level it is in a strong price location.
Momentum (PriceOsc) for all four major stock index ETFs has fallen back to zero. This indicator now ticking up would be a further positive.
First Level Support = 2063.00 (5mn poc)
Second Level Support = 1971.00 = 1/2R off this year’s high
Stocks>50dyma numbers: Nyse 59% (from 58%), Nasdaq 54% (from 55%), R2000 56% (from 57%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6,62 (from 8.21). Lat week the ratio reached 8.41, 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, and has rallied. Good chart to monitor.
Dollar Index: on Wednesday printed its highest level since April.
Gold GLD: on Wednesday printed its lowest level since 2009. Very weak price location.
Oil USO: was printing time below 14.28, the 1/2R off the August low, in a weak price location and then feel sharply – Crude futures has today printed lowest level since August
EURUSD: on Wednesday printed its lowest level since April.
