posted 07.48 a.m. est
Pre-open comment Monday 9th December
Last week I marked Significant Selling once (Ineffective) and Significant Buying once (Effective). Aggressive Buying (green-at-top) was marked on Friday following a gap-higher to Open and ES finished the week almost where it started. The 30day poc migrated to 1792 and as long as ES holds above this level it is in a strong price location.
First Level Support = 1792.00 (30dy poc)
First Level LT Support = 1758.50 poc
Breadth: The CP Market Timing system turned negative (from neutral) for Nyse, stayed positive for Nasdaq and R2000 and stayed negative for UK.
Stocks>50dyma numbers: Nyse 63%, Nasdaq 63%, R2000 65%, UK 49%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 504. Thursday’s ratio at 5.67 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: Last week probed the August low. Remains in a weak price location.
Gold GLD: 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 currently printing close to that level.
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). Has today printed a 26day high.
