Midday Wednesday 18th December
The last four Value Areas have been printed between the POCs at 1792.00 and 1758.50 with no Significant Buying or Selling being marked. I would suggest a break out of this consolidation above/below those levels would indicate the ST direction but see previous highlighted comments.
Stock Index ETFs: DIA and SPY are printing just below their 2mn pocs in a weaker price location. Key chart/level to monitor is IWM which found Support at (and is now printing above) 109.16, its 3mn poc. Look for further weakness if time is spent below that level. Momentum for all four charts is down.
First Level Resistance = 1792.00 poc
First Level Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 49%, Nasdaq 57%, R2000 57%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio reached 5.67 on Tuesday 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: Recently 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: For the last nine days has been printing very close to the maj poc at 80.15. This is not giving us a clear idea re strength/weakness of the chart.
EURUSD: Printed a 30day high last week. Momentum is up and positive.
