Pre-open comment Monday 30th December
Last week I marked Significant Buying once. Significant Selling has not been marked for twelve days. As long as ES holds above the 4mn poc at 1803.50 it is in a strong price location.
Support = 1803.50 (4mn poc)
Stock index ETFs: Momentum for all four Stock index ETFs is positive and up.
Breadth: The CP Market Timing system turned positive (from neutral) for Nyse, stayed positive for Nasdaq and R2000 and turned neutral (from negative) for UK.
Stocks>50dyma numbers: Nyse 67%, Nasdaq 72%, R2000 73%, UK 71%. Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.65 which is the highest ratio in my database. This indicator is registering extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: The 10mn poc recently migrated down to 102.85. Chart currently prints below this poc which is very weak price location.
Gold GLD: Recently 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: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level.
EURUSD: Printed a two year high last week.
