posted 8.38 a.m. est
pre-open comment Monday 24th December
Friday’s session (like Thursday’s) generated a lower, wider Value Area. No Significant Buying or Selling was marked. Friday Closed within Mon-Wed Hi-Lo Range which indicates no bias on the weekly timeframe.
First Level Support = 1413 (3mn poc).
Second Level Support = 1406 (maj poc)
Breadth: ChartProfit Market Timing System remained positive for all Major Market Charts.
%Stocks>50dyma numbers: Nyse 74% and Nasdaq 64%. Numbers >50 are supportive.
Price location: major equity ETFs need hold above their 1/2R levels which are: SPY 141.40; IWM 81.55; DIA 130.45.
Key Charts this week:
QQQ which (unlike other equity ETFs) prints below its 1/2R Support – looking for this chart to hold its 15month poc Support at 64.84.
Dollar Index – watch price location relative to 79.19 (poc Support).
And, most importantly, Bulls would want to see ES holding 1406.
Sentiment: More Bulls emerged in the Sentiment readings. AAII, NAAIM and OCC Calls%_10dyma particularly indicated that optimism has been increasing fast (see eBook).
My version of the Rydex Assets Ratio ended the week at 3.55. Last Wednesdays 3.80 was a 30 day high for the ratio.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Last week printed its highest level since April. Currently printing above 1.3117, the 24mn poc which is strong price location.
? Dollar Index: currently printing below the 80.15 major level which is weak price location. May have found Support at the 79.19 poc.
+ TLT: Hit a 40day low last week. Up from that low with First Level Resisatnce at the 1/2R at 122.62.
imo these charts have a slight positive bias for equities.
