posted 08.42 a.m. est
Pre-open comment Tuesday 31st December
Monday’s session generated another narrow Value Area consolidating price above 1830. As long as ES holds above the 4mn poc at 1803.50 it is in a strong price location.
Support = 1803.50 (4mn poc)
Stocks>50dyma numbers: Nyse 68% (from 67%), Nasdaq 72% (unchanged), R2000 72% (from 73%). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.50. Friday’s 6.65 is the highest ratio in my database. This indicator is registering extreme optimism which has historically been a warning for the market.
Supporting Charts UNCHANGED
Bonds TLT: The 10mn poc recently migrated down to 102.85. Chart currently prints below this poc which is very weak price location.
Gold GLD: Recently tested the June low and remains in a very weak price location.
Oil USO: Has printed a higher low above 34.13, (3yr poc). Strong price location. Momentum (although positive) is down.
Dollar Index: For three months has been oscillating around 80.15, the maj poc. Looking for a clear higher low above, or lower high below this level.
EURUSD: Printed a two year high last week.
