posted 09.05 a.m. est
Pre-open comment Friday 6th December
Thursday generated a narrow Value Area ahead of today’s job’s numbers which have just been released. The minor poc at 1792 was the exact session high (see yesterday’s highlighted comments) but thirty minutes pre-open ES is above that level, and has printed above 1800.
First Level S/R = 1792.00 (21dy poc)
First Level LT Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 56% (FROM 57%), Nasdaq 59% (unchanged), R2000 60% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.67 which is the highest in my database. This indicator is registering extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: pre-open today has probed the August low. Remains in a weak price location.
Gold GLD: pre-open reached its lowest level since early July. Still in a very weak price location.
Oil USO: Back in a stronger price location back above 34.13, (3yr poc). Momentum is now positive and up.
Dollar Index: The last four weeks have been spent consolidating in a stronger price location back above the important level at 80.15 but has not rallied much. Price back below that level would be an indication of weakness.
EURUSD: Strong LT price location above 1.3416 (1/2R off 2010 low). ST price location is also strong as long as chart holds above 1.3564, (minor 1/2R off October high).
