posted 7.45 a.m. est
Pre-open comment Friday 31st December
Thursday: ES probed below First Level Support and tested the Value Area Low (1252) of this higher range of last few days.
1252 remains the 6day VAL and acceptance below this level may be a minor indication of weakness. Significantly, the 30day poc migrated up to 1254 which is now First Level S/R. A poc migrating higher isn’t always bullish and if ES cannot recover back above that level we may see some weakness. Significant Sellers have been absent for ten days now so Short Trades are still eliminated for me.
First Level S/R = 1254.0 (30day poc)
2nd Level Support = 1238.50 poc
ST Sentiment: My version of the Rydex Assets Ratio was unchanged at 3.2.
LT Sentiment: AAII (public) poll reported Bulls% at 51.6 (down form 63.3) and Bears% at 20.1 (up from 16.4). Therefore the nett was down to 31.5 from 46.9. While this is a decrease in bullishness remember that last week saw a five year extreme.
Supporting Charts
+ EURUSD: chart appears to have formed a higher low on 1.3087, the 1/2R off the June low and has reached a twelve day high today.
+ UDX: Back below the 80.15 major 1/2R and at a twelve day low today.
+ TLT: currently prints below the 95.33 maj poc.
imo these charts have a positive bias for equities.
