S&P 500 emini pre-open Monday 8th December
posted 09.10 a.m. est
Last week I marked Significant Buying once and no Significant Selling. Sellers Reacted on 11/21 but Aggressive Selling has not been marked since 13th October. Value Areas for the last three days have been generated entirely above the minor(16day) poc, now at 2066.00. which is a positive in the ST. ES prints close to this minor Support one hour pre-open today. Time spent below 2066 would be a indication of weakness in the ST and is worth monitoring at the start of this week.
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)
Breadth: CP Market Timing System – Nyse & R2000 remained neutral, Nasdaq & UK remained positive.
Stocks>50dyma numbers: Nyse 69%, Nasdaq 66%, R2000 72%, UK 76%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 12.12. Last Monday’s ratio at 13.73 is the highest in the database. 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: has today printed its highest level since March 09.
Gold GLD: Still in a weak price location below the 119.87 maj poc.
Oil USO: pre-open today has printed its lowest level since March 2009.
EURUSD: is today printing below 1.2300, major Time Support, at its lowest level since Aug 2012.
