posted 09.22 a.m. est
Pre-open comment Thursday 19th December
Fed announced it would slow down its bond buying program. ES initially sold off but held the Support at 1758.50 and then rallied strongly. Aggressive Buying (green-at-top) was marked and ES is now printing above the 1792.00 poc. As long as ES holds above this level it is in a stronger price location.
A Key chart/level to monitor is IWM which found Support recently at 109.16, its 3mn poc.
1st Level Support = 1792.00 poc
2nd Level Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 50% (from 49%), Nasdaq 56% (from 57%), R2000 57% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 5.42. Having reached 5.67 on Tuesday which 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: Recently probed the August low. Remains in a weak price location.
Gold GLD: Still in a very weak price location. Looks set to test the June low.
Oil USO: Back in a stronger price location back above 34.13, (3yr poc).
Dollar Index: Printing back above 80.15, the maj poc.
EURUSD: Printed a 9day low today. Momentum is positive but has turned down.
