S&P 500 emini pre-open Thursday 11th December

posted 05.55 a.m. est

On Wednesday I marked Reactive and Aggressive Selling. The session closed below 2035.00 but the Value Area was printed almost entirely above it. Time below this level would suggest further weakness. I would only consider new longs if Significant Buying (green) is marked above 2035.00, see previous comments. This level could be intraday Support or Resistance today.

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

Stocks>50dyma numbers: Nyse 58% (from 67%), Nasdaq 57% (from 66%), R2000 62% (from 72%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 12.58. Last week the ratio reached 13.73 which is the highest in the database. Historically this has been a warning for the market. This week Bear Fund Assets that I follow have fallen to a new low – lowest in the database.

Supporting Charts:
Bonds TLT: chart remains in a strong price location above 117.14 (maj poc) and on Wednesday printed a 39day high.
Dollar Index: on Monday printed its highest level since March 09.
Gold GLD: printed a 33day high on Tuesday but remains in a weak price location if it prints below the 119.87 maj poc.
Oil USO: looks set to test the extreme low of Feb 2009.
EURUSD: tested 1.2300, major Time Support, on Monday. Currently printing just above that level.