posted 9.24 a.m. et
Pre-open comment Wednesday 7th December
I wrote pre-open Friday (highlighted on graphic) that ES may find it difficult to make progress above the VAH at 1258 without some consolidation first. That’s been the case but as long as ES holds above the 50dy poc at 1244 we can’t expect much weakness. Depending on where the Open is, the minor (12day) poc at 1257 (SPY 126.14) may be Support/Resistance today and provide a clue re ST direction.
First Level Support = ES 1244 (50dy poc) SPY = 125.44*
*migrated to this level on Monday
Second Level Support = ES 1214.50 (1/2R off May high) SPY =122.30
Sentiment: My version of the Rydex Assets Ratio was lower at 2.48 (from 2.55).
Supporting Charts (+ or – or ? for equities). (Momentum = PriceOsc)
? EURUSD: Still in a weak position below the 1.3635 poc and today below the 1/2R off June 2010 low. But, Momentum has been up for eight days. It is worth noting that considering the rally in equities over the last few days this chart has not responded very much.
? Dollar Index: Still in a strong position above the 77.05 poc but Momentum has been down for eight days.
? TLT: currently holding (just) above the 116.34 poc. Momentum has been down for eight days.
Bias for equities based on these Supporting Charts is unclear imo.
