S&P 500 emini pre-open Friday 5th December

posted 09.06 a.m. est

On Thursday, the minor(15day) poc at 2067.00 was tested again but the session generated a second Value Area entirely above that level with ES once again reaching a new high. Price printing time below 2067.00 would be the first sign of weakness in the ST. First sign of LT weakness would be price printing below 2035.00. Negatives are the divergences between price/daily breadth indicators and the extreme bulls seen in the recent Sentiment data, below.

ES First Level S/R = 2035.00 (2mn poc)
ES Second Level Support = 1962.00 (6mn poc)

Stocks>50dyma numbers: Nyse 68% (from 70%), Nasdaq 61% (from 62%), R2000 66% (from 68%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 12.44. Monday’s ratio at 13.73. is the highest in the database and historically this has been a warning for the market.

Supporting Charts:
Bonds TLT: has corrected this week but chart remains in a strong price location above 117.14 (maj poc).
Dollar Index: on Thursday printed its highest level since March 09.
Gold GLD: Still in a weak price location below the 119.87 maj poc.
Oil USO: on Thursday printed its lowest level since March 2009.
EURUSD: has today printed its lowest level since Aug 2012 and once again is testing the major Support at 1.2300