posted 9.27 a.m. et
Pre-open comment Thursday 22nd December
In the early part of Wednesday’s session there was follow-on weakness from the overnight rejection of the probe above 1244. This was reversed in the p.m. with ES closing strong but generating an overlapping/lower Value Area.
Overnight ES has once again probed above the 75day poc at 1244. Pre-open prints just below that level.
%Stocks>50dyma number has improved for Nyse, 53 which is Supportive, but Nasdaq remains below 50% (44).
First Level Resistance = ES 1244 (75dy poc) SPY =125.44
First Level Support = ES 1204.50 (1/2R) SPY =122.30
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at at 2.54. The recent high was at 2.96 (11/07) and the recent low at 1.61 (11/25).
The ISEE (equity-only) index caame in at 215, there has been only one single day’s reading higher than this in two months. Also VIX closed at its lowest level in almost five months.
Supporting Charts (+ or – or ? for equities). (Momentum = daily PriceOsc)
? EURUSD: weak position. Printed an eleven month low last week. Momentum turned up.
? Dollar Index: pre-open prints below 80.15 (just below), the 1/2R off the 2008 low. Momentum turned down.
– TLT: Last week the 10month poc migrated higher to 117.88 and currently the Chart prints above that level.
imo these are unclear re ST bias for equities.
