posted 09.03 a.m. est
Pre-open comment Monday 23rd December
Last week I marked Significant Buying once and no Significant Selling. Mid week ES probed down towards the 1758.50 poc. Support was found just above this level and ES rallied strongly for the rest of the week, closing at a new high. As long as ES holds above the 1792 poc it is in a strong price location. Breadth numbers improved (see below) but Sentiment is a concern (see below and eBook).
1st Level Support = 1792.00 poc
2nd Level Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 61%, Nasdaq 66%, R2000 68%, UK 58%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.55. Thursday’s ratio at 5.91 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: Last week the 10mn poc migrated down to 102.85. Pre-open chart prints above this level but Price below this poc would be very weak location and suggest further weakness.
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: Printing back above 80.15, the maj poc in a stronger price location.
EURUSD: Holding a strong price location above 1.3564, the 1/2R off October high. Momentum is positive but down.
