S&P 500 emini pre-open Tuesday 23rd December

posted 9.26 a.m. est

Yesterday’s session generated a very narrow Value Area on low Volume. Important Note: the 3mn poc has migrated to 2066.00 – this is now First level Support. We often see a migration of a poc level of some degree just before a directional move. As long as ES holds 2066.00 it is in a strong price location.

First Level Support = 2066.00 (3mn poc)
Second Level Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)

Breadth: CP Market Timing System turned back to neutral for Nyse and back to positive for Nasdaq, R2000 and UK.
Stocks>50dyma numbers: Nyse 66% (from 65%), Nasdaq 64% (from 62%), R2000 70% (from 69%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was slightly lower at 11.29. Earlier in the month the ratio reached 13.73, the highest in the database and once again this needs to be watched with the ratio climbing again. I particularly note that Bear Fund assets I follow (as a total) set a new low on Monday.

Supporting Charts:
Bonds TLT: last week probed above the October high to print its highest level since August 2012. TLT remains in a LT strong price location above 117.14 (maj poc).
Dollar Index: early last week held the minor Support at 87.70 (2mn poc) and has today printed its highest level since April 2006.
Gold GLD: remains in a weak price location below the 119.87 maj poc.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and remains close to the new low printed last week.
EURUSD: probed the 4mn Time Resistance at 1.2475 last week and is lower from there. Is today printing below 1.2300, the maj poc at its lowest level since August 2012.