S&P 500 emini pre-open Monday 1st December

posted 08.48 a.m. est

ES spent last week in a narrow range. No Significant Buying or Selling was marked. A minor poc developed at 2066 and pre-open today ES is printing below that level. Effective Selling has not been marked since early October.

First sign of LT weakness would be price printing below 2035.00. Negatives are divergences between price and daily breadth indicators and the extreme bulls seen in the Sentiment data, below.

ES First Level S/R = 2035.00 (2mn poc)
ES Second Level Support = 1962.00 (6mn poc)

Breadth: CP Market Timing System turned neutral for Nyse, stayed positive for Nasdaq, stayed neutral for R2000 and stayed positive for UK.
Stocks>50dyma numbers: Nyse 70%, Nasdaq 63%, R2000 67%, UK 74%. Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended the week at 13.32. Thursday’s ratio at 13.37 is the highest in the database. Historically this has been a warning for the market.

Supporting Charts:
Bonds TLT: chart remains in a strong price location above 117.14 (maj poc) and has reached a 30day high on Friday.
Dollar Index: printed a four year high last week and remains close to that level.
Gold GLD: Still in a weak price location below the 119.87 maj poc.
Oil USO: pre-open today is printing its lowest level since March 2009.
EURUSD: printing close to the two year low set earlier in the month. There is Support at 1.2300