Technical analysis – Market pre-open 23rd November 2015
On Tuesday and Thursday last week Sellers were active intraday but were not Effective as both days generated higher Value Areas. Buyers were more successful and ES rallied throughout the week to probe the 2094 Resistance (major poc) on Friday. Price printing time above this level would indicate higher but as long as ES holds above 2063.00 poc 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 Resistance = 2094.00 (maj poc)
First Level Support = 2063.00 (5mn poc)
Second Level Support = 1971.00 = 1/2R off this year’s high
Market Charts: Nyse & R2000 are neutral, Nasdaq is positive, UK remained negative.
Stocks>50dyma numbers: Nyse 60%, Nasdaq 56%, R2000 59%, UK 61%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.77. On 11/11 the ratio reached 8.41 which was a 57day high.
Supporting Charts:
Bonds TLT/IEF : Major Time Support is at TLT 117.14. 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: has today printed its highest level since April.
Gold GLD: last week printed its lowest level since 2009. Very weak price location. Cash indicates a lower open today.
Oil USO: last week printed its lowest level since August. Futures indicate a higher open today.
EURUSD: has today printed its lowest level since April.
