posted 9.25 a.m. est
pre-open comment Tuesday 11th December
We now have three consecutive Value Areas printed above 1406 since the major poc migrated to that level. Significant Buying marked above that level would be a further positive. Monday’s VA was generated above the 12mn VAH and acceptance at/above this level would be a positive. Pre-open ES is printing above 1420 and it is likely the day session will Open above the long term VAH. This happened on 12/03 and Sellers Responded (see chart); they may or may not see opportunity again today and that may determine if ES continues to range or break higher. See Sentiment (below).
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 48%. 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 lower at 2.65 (from 3.15). That’s close to the recent low for the ratio (11/16) at 2.57 which was the lowest since 7th June. This is a contrarian indicator.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Momentum turned down on Friday but Chart prints back above the 4mn poc at 1.2964.
? Dollar Index: Chart currently printing at the 80.15 major level
+ TLT: is printing below the 125.50 poc Resistance.
imo these charts have an ST positive bias for equities.
