emini analysis 9th December 2016 – pre-open from Chartprofit
See previous, highlighted, comments. ES found Support earlier in the week at 2200, the 5week poc, and held that strong price location. On Wednesday I marked Aggressive Buying as ES auctioned strongly higher and Aggressive Buying (green at top) was marked again on Thursday. As long as chart ES holds above 2200 it is in a strong price location.
First Level Support = 2200 (5week poc)
Second Level Support = 2159.50 (6month poc)
Stocks>50dyma numbers: Nyse 77% (from 74%), Nasdaq 72% (from 70%), R2000 83% (from 80%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.18. The ratio has fallen from 8.48 (an 11 month high) just three days ago to a 97 day low. That kind of fall in the ratio nearly always happens after the market has been falling sharply and and tends to mark a capitulation point . In this case the market is strongly higher. Some unusual Sentiment here. Pre-open Tuesday I wrote “The ratio at an 11 month high is always worth noting as a warning but it seems that Bear fund assets AND Bull fund assets both fell sharply yesterday and that’s rare. Bull fund assets falling 19% in one day would usually be a positive.” More in today’s video.
Supporting Charts
See today’s video
click to enlarge graphic
