posted 9.29 a.m. et
Pre-open comment Tuesday 20th December
Monday’s session high came in at exactly the 8day poc at 1218.5. I wrote pre-open that “intraday S/R at this level could help decide the very minor bias”, and that was the case yesterday with ES closing below 1204.50 (1/2R) and within the marked Aggressive Selling (red-at-bottom).
Pre-open ES has recovered that level and rallied as high as 1217.50. Last imbalance is negative and CP Market Timing System is negative so I’m cautious here but once again if ES can hold above the 1204.50 1/2R it is a minor sign of ST strength.
First Level Resistance = ES 1244 (50dy poc) SPY =125.44
First Level Support = ES 1204.50 (1/2R) SPY =122.30
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 2.43. The recent high was at 2.96 (11/07) and the recent low at 1.61 (11/25).
Supporting Charts (+ or – or ? for equities). (Momentum = daily PriceOsc)
– EURUSD: weak position. Printed an eleven month low last week. Momentum is down.
? Dollar Index: prints back below 80.15, the 1/2R off the 2008 low.
– TLT: Last week the 10month poc migrated higher to 117.88 and currently the Chart prints above that level.
imo these charts have a negative bias for equities.
