posted 9.24 a.m. et
Pre-open comment Monday 5th December
Apart from a test very late on Friday ES held above the newly migrated 50dy poc at 1244. Time spent below that level would be the first minor sign of weakness this week.
Last week I marked Significant Buying once and no Significant Selling. SP500 index closed well above the previous week’s high but below Mon-Wed Range high. Pre-open all four major index ETFs are printing above the important levels discussed in Friday’s webcast and shown in today’s eBook.
The %Stocks>50dyma numbers for all Major Market Charts are above 50 which is supportive, but the Chartprofit Market Timing System is Mixed. Positive for Nyse Market Chart and Negative for Nasdaq and the UK.
First Level Support = ES 1244 (50dy poc) SPY = 124.10
Second Level Support = ES 1214.50 (1/2R off May high) SPY =122.30
Sentiment: My version of the Rydex Assets Ratio finished the week at 2.53 which was up 57% from the previous week and is in the top quartile of readings over the last three months. This needs watching closely if it moves higher; the recent high for the ratio (early November) was was 2.96.
Supporting Charts (+ or – or ? for equities). (Momentum = PriceOsc)
? EURUSD: Still in a weak position below the 1.3635 poc but Momentum has been up for six days. It is worth noting that considering the rally in equities over the last few days this chart has not responded very much.
? Dollar Index: Still in a strong position above the 77.05 poc but Momentum has been down for six days.
? TLT: pre-open prints just above the 116.34 poc. Momentum Momentum has been down for six days.
Bias for equities based on these Supporting Charts is unclear imo.
