posted 9.16 a.m. est
pre-open comment Monday 10th December
Last week I marked Significant Selling twice and Significant Buying once. Sellers Responded early in the week to a probe above the 12 month VAH at 1416 and then subsequently Buyers Responded exactly at 1397 which was at that time the major poc. However the major poc subsequently migrated to 1406 so Selling marked below that level would now be significant and indicate further weakness.
At the start of this week ES is printing close to the 1416 VAH and it will be interesting to see if there is acceptance of price here or a further rejection. The most receent imbalance was the Significant Buying on Wednesday so new short trades are eliminated for me at least until Significant Selling is marked again.
First Level Support = ES 1406 (maj poc)
Breadth: Chartprofit Market Timing System for all major Market Charts is now positive.
%Stocks>50dyma numbers: Nyse 62% and Nasdaq 45%. Numbers >50 are supportive so this is mixed.
Price location. QQQ and XLK (tech) relatively underperforming and printing below their 1/2R. If these two charts could recover those levels it would be a positive for the market. Other index ETFs are printing above their 1/2R.
1/2R levels: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95; XLK 29.48
Sentiment: My version of the Rydex Assets Ratio was again almost unchanged at 3.15. Recent low for the ratio (11/16) was 2.57 which was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
? EURUSD: Momentum turned down on Friday. Chart prints just below the 4mn poc at 1.2964. If chart finds Resistance there or fails to recover that level then further weakness would be expected.
? Dollar Index: Chart currently holding above 80.15 which is stronger price location and Momentum has turned up. It is Key to see if chart can hold this level at the staart of this week.
? TLT: pre-open is printing just below the 125.50 poc Resistance.
All three charts are printing very close to key levels. Bias for equities will hopefully clear very soon as these levels hold or fail.
