Technical analysis – Market post-open 18th December
An early probe above Wednesday’s high was rejected on Thursday. Sellers were active intraday. An “inside” Value Area was generated. Late in the day weakness saw a test of the previous day’s low which negated any ST positive implications of Wednesday’s green-at-top high and ES finished the session below 2043 (min 1/2R) in a weaker price location.
Bulls would want to see Breadth numbers improve, see below, and Momentum turn up, see Pulse Chart.
Resistance 2087.00 (5mn poc) to 2094.00 (maj poc)
First Level Resistance = 2043.00 (1/2R off November’s high, Mar contract)
Support = 1965.25 (1/R off this year’s high)
Key Charts/Levels:
IWM: Resistance at 115.35 (maj poc)
SPY: Resistance at 209.90 (maj poc)
Stocks>50dyma numbers: Nyse 29% (from 36%), Nasdaq 39% (from 43%), R2000 34% (from 40%). Numbers >50 are supportive.
Sentiment: Rydex traders had been reluctant to commit prior to the big event day on Wednesday but my version of the Rydex Assets Ratio was lower at 6.77 on Thursday. That number doesn’t tell us too much but the 32day low for the ratio is 6.62.
Supporting Charts: see today’s webcast
