S&P 500 emini pre-open Tuesday 9th December

posted 08.05 a.m. est

On Monday Aggressive Selling (red-at-bottom) was marked for the first time since 13th October. ES spent most of the session below 2066, the minor poc which is an indication of weakness in the ST, see yesterday’s highlighted comments. Considering that Momentum (PriceOsc) is still heading lower for all four major index ETFs, the divergences between price/daily breadth indicators and the extreme bulls seen in the recent Sentiment data, new longs are eliminated for me at least until Significant Buying is marked again. First sign of LT weakness would be price printing below 2035.00.

ES First Level S/R = 2035.00 (2mn poc)
ES Second Level Support = 1962.00 (6mn poc)

Stocks>50dyma numbers: Nyse 65% (from 69%), Nasdaq 60% (from 66%), R2000 65% (from 72%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio ended was higher at 13.46. The only ratio that has been higher than this was Monday, one week ago, at 13.73. Historically this has been a warning for the market. Bear Fund Assets that I follow fell to a new low – lowest in the database.

Supporting Charts:
Bonds TLT: chart remains in a strong price location above 117.14 (maj poc) and pre-open today has printed a 37day high.
Dollar Index: on Monday printed its highest level since March 09.
Gold GLD: Still in a weak price location below the 119.87 maj poc.
Oil USO: on Monday printed its lowest level since March 2009.
EURUSD: tested 1.2300, major Time Support, on Monday. Currently printing above that level.