Technical analysis – Market pre-open 7th December 2015
On Friday ES immediately rejected price below the 1/2R at 2054.50 and rallied, see Friday’ s comments. The major poc at 2094 was Resistance; 2087.00 (5mn poc) continued to be attractive and ES spent most time at that level. Aggressive Buying was marked but please read Thursday’s comments as well.
Overnight ES has briefly probed the 2094.00 Resistance once again and has been rejected -30minutes pre-open is printing 2084.00. Buying marked above 2094.00 would indicate higher and Selling marked below 2054.50 would indicate lower.
Area of Price Resistance 2087.00 (5mn poc) to 2094.00 (maj poc)
First Level Support = 2054.50 (1/2R off the November high)
Market Charts: Nyse and UK stayed neutral, Nasdaq and R2000 stayed positive.
Stocks>50dyma numbers: Nyse 56%, Nasdaq 57%, R2000 59%, UK 58%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 8.54. Tuesday’s ratio at 9.00 was a 70day high.
Supporting Charts:
Bonds IEF, the 7-10 yr ETF: probed the Resistance at 106.60 (18mn poc) last week but this was rejected although chart held the 105.00 (major poc) Support. Price below that level would be weak price location.
Dollar Index: last week printed its highest level since the March high but sharply lower on Thusday following the ECB announcement.
Gold GLD: cash Gold printed a new five year low last week but rallied on Friday. Very weak price location.
Oil: futures today have printed the lowest level since the August low.
EURUSD: last week printed its lowest level since April but sharply higher on Thusday following the ECB announcement.
