posted 09.09 a.m. est
Pre-open comment Friday 27th December
Thursday’s session generated a higher, wider Value Area. Aggressive Buying (green-at-top) was marked. The 4mn poc migrated up to 1803.50, this is now Support and ES is in a strong price location as long as it holds this level.
Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 67%, Nasdaq 72%, R2000 73%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.31. Ratio reached 6.50 on 24th which is the highest in my database indicating extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: Last week the 10mn poc migrated down to 102.85. Chart currently pronts below this poc which is very weak price location.
Gold GLD: Last week tested the June low and remains in a very weak price location.
Oil USO: Has printed a higher low above 34.13, (3yr poc). Strong price location.
Dollar Index: Today prints back below 80.15, the maj poc in a weaker price location.
EURUSD: Has today printed a two year high.
