pre-open comment Tuesday 18th December
Since the maj poc migrated to 1406 we have seen eight consecutive Value Areas printed above that level and yesterday I marked Significant Buying above that level which is a further positive. New short trades are now eliminated for me at least until Significant Selling is marked again.
First Level Support = 1413 (3mn poc).
Second Level Support = ES 1406 (maj poc)
Breadth. %Stocks>50dyma numbers: Nyse 64% and Nasdaq 55%. Numbers >50 are supportive.
Price location: Three of the four major equity ETFs print convincingly above their 1/2R levels. Pre-open QQQ is higher and prints at its 1/2R but looks as though it has found Support a little lower at its poc level at 64.84 which I said yesterday was the KEY Chart/Level.
1/2R levels: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95; XLK 29.48
Sentiment: My version of the Rydex Assets Ratio was down slightly at 3.49 (from 3.65 which was a 27day high). The recent low for the ratio at 2.57 on 11/16 was the lowest since 7th June.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: prints above 1.3117 (24mn poc) which is strong price location.
+ Dollar Index: currently printing below the 80.15 major level which is weak price location.
+ TLT: printing below the 125.50 (the 9mn poc) which is weak price location.
imo these charts suggest a positive bias for equities.
