posted 07.12 a.m. est
pre-open comment Monday 17th December
Last week I marked Significant Selling twice and no Significant Buying. So Sellers were active but in the longer timeframe their activity can be called Responsive as it took place above the maj poc at 1406 with price action generally higher than the previous week and last week’s low only probing First Level Support (1413) on Friday. For now I will assume this is corrective price action unless Effective Selling is marked below 1406 which would have negative implications for the longer timeframe. Daily Momentum (price osc) turned down for the majority of stock indices/ETFs.
First Level Support = 1413 (3mn poc).
Second Level Support = ES 1406 (maj poc)
Breadth. Chartprofit Market Timing System for all major Market Charts is positive. %Stocks>50dyma numbers: Nyse 60% and Nasdaq 49%. Numbers >50 are supportive.
Price location: All four major equity ETFs are close to important levels (see below) and where they print relative to these levels is again important to monitor this week.
1/2R levels: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95; XLK 29.48
Also QQQ (KEY Chart/Level) 64.84 = 15mn poc.
Sentiment: My version of the Rydex Assets Ratio ended the week at 3.65 which is a 27dy high. The recent low for the ratio at 2.57 on 11/16 was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: prints above 1.3117 (24mn poc) which is strong price location.
+ Dollar Index: currently printing below the 80.15 major level
+ TLT: printing below the 125.50 (the 9mn poc).
imo these charts suggest a positive bias for equities.
