Pre-open comment Friday 20th December
Thursday’s session generated a higher, narrower Value Area above the 1792.00 poc with ES consolidating price close to the previous day’s high. As long as ES holds above this level it is in a strong price location in the ST. Sentiment is a concern (see below) and more in today’s webcast.
1st Level Support = 1792.00 poc
2nd Level Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 55% (from 50%), Nasdaq 58% (from 56%), R2000 57% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.91 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: The 10mn poc has just migrated down to 102.85. Price below this level would be very weak location and suggest further weakness.
Gold GLD: Tested the June low on Thursday.
Oil USO: In a strong price location above 34.13, (3yr poc).
Dollar Index: Printing back above 80.15, the maj poc in a stronger price location.
EURUSD: Printed a 10day low today. Momentum is positive but down.
