posted 9.29 a.m. est
Pre-open comment Thursday 9th December
On Wednesday Significant Sellers Responded (green-at-bottom) below First Level Support at 1222. This was a test below the 3day VAL (Value Area low) and represented a minor opportunity for the Buyers which they quickly took advantage of. This negates the Responsive Selling on Tuesday and suggests the Buyers are still in control of the dayframe. Overnight ES has printed as high as 1238 (a new rally high) – it will be interesting to see if price is accepted above 1235 or rejected as it was on Tuesday.
Dayframe: Short Trades are once again eliminated for me. I’ll leave the first hour alone – if Responsive Sellers are going to step in again at these higher levels they will most likely do so early in the session.
First Level Support stays at 1222 (minor poc)
ST Sentiment: My version of the Rydex Assets Ratio was up from 2.6 to 2.64. This is the highest ratio since early November. The ISEE (equity-only) ratio came in with another high number at 233 which lifted the 10 dayma to its highest level since the late April price high.
LT Sentiment: Investors Intelligence (newsletters) poll reported 56.2% Bulls (same as w/e 11/19) and is the highest Bulls% since December 2007.
Supporting Charts – unchanged
+ EURUSD: currently prints above the 1/2R off the June low at 1.3087
+ UDX: currently prints (just) below the 80.15 major 1/2R.
+ TLT: currently prints below the 95.33 maj poc.
imo these charts have a positive bias for equities but watching the Dollar Index closely.
