posted 9.00 a.m. est
pre-open comment Thursday 27th December
ES tested the 6mnth VAH at 1442 last week and is off that level but currently holding above the 1406 (maj poc) Support. The most recent imbalance was the Significant Selling marked on 19th Dec so new long trades are still eliminated for me at least until Significant Buying is marked again.
First Level Support = 1413 (3mn poc).
Second Level Support = 1406 (maj poc)
Breadth: %Stocks>50dyma numbers: Nyse 64% and Nasdaq 58%. Numbers >50 are supportive.
This is a news driven market and potentially very volatile. Price location (below) is most important at this time.
Price location: If major equity ETFs should print below their 1/2R levels shown below it would be weak price location and I would then anticipate further weakness. On Wednesday SPY and DIA probed the area of their Support which has held, so far.
1/2R: SPY 141.40; IWM 81.55; DIA 130.45.
Pre-open today KEY CHART QQQ is printing below 65.95 (1/2R) and just below 64.84 (15mn poc).
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.56. Last week saw a 30 day high for the ratio at 3.80.
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. Off that low but currently printing below the First Level Resistance at 122.62 (1/2R of September low).
imo these charts have a slight positive bias for equities.
