Pre-open comment Friday 17th December
From yesterday “Buyers could well respond if 1232.50 is tested”.
Thursday’s First level Support at 1232.50 was the low of the session. Buyers responded auctioning price back above yesterday’s First level Resistance at 1240 and ES has not tested below that level since. This shows that obvious support levels are holding which is ST bullish. Aggressive Buying (green-at-top) was marked later in the day and that means once again short trades are eliminated for me.
First Level S/R = 1241 (5day poc)
First Level Support = 1234.50 (10day poc)
ST Sentiment: My version of the Rydex Assets Ratio was down from 3.39 to 3.0. Wednesday’s Ratio was the second highest level I have in my database.
The ISEE (equity-only) ratio reached a record high at 354. Sentiment is extreme Bullish which is a concern (contrarian) – this as discussed in webcast and suggests upside is limited here.
Supporting Charts – unchanged
+ EURUSD: currently prints above the 1/2R off the June low at 1.3087
? UDX: currently prints at the 80.15 major 1/2R.
+ TLT: currently prints below the 95.33 maj poc.
imo these charts still have a positive bias for equities – watching the Dollar Index closely.
