S&P 500 emini pre-open Friday 9th January

posted 08.55 a.m. est

See previous comments. ES opened just above the 2035.00 poc and immediatlely rallied. This is now the level to monitor and as long as the chart holds this level it is a strong price location. Time spent between 2065-2070 could migrate that poc higher again so we should watch for that possiblity. Breadth numbers improved, see below.

First Level Support = 2035.00 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)

Stocks>50dyma numbers: Nyse 53% (from 43%), Nasdaq 51% (from 42%), R2000 55% (from 45%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 10.60 (from 9.74). We need to monitor this. This indicator registered little fear during the recent decline and historically it is still very high. In early December the ratio reached 13.73, the highest in the database.

Supporting Charts:
Bonds TLT: lower pre-open today but exceeded the 2012 high on Tuesday.
Dollar Index: on Thursday reached its highest level since December 2005.
Gold GLD: remains in a weak LT price location below the 119.87 maj poc but pre-open today is printing above 114.78, the 8mn poc.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and on Tuesday printed a new low.
EURUSD: probed the 4mn Time Resistance at 1.2475 last month and is lower from there, printing below 1.2300, the maj poc, and on Thursday printed its lowest level since 2005.