pre-open comment Wednesday 12th December
On Tuesday ES Opened above the 12mn VAH and Sellers did not Respond as they did on 12/03 (see yesterday’s comments). There is no obvious Resistance level but the 6mn VAH comes in at 1442. Potentially a volatile day for the market with the FED data etc later but the analysis shows improvement in Breadth and price location. Key chart levels today that would indicate risk-off are QQQ back below 65.95 and Dollar Index back above 80.15.
First Level Support = ES 1406 (maj poc)
Breadth. %Stocks>50dyma numbers: Nyse 64% and Nasdaq 53%. Numbers >50 are supportive.
Price location. Index ETFs 1/2R levels: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95. All these charts are currently printing above their 1/2R levels which is improved price location.
Sentiment: My version of the Rydex Assets Ratio was higher at 2.87. Tuesday’s reading at 2.65 was close to the recent low for the ratio (11/16) at 2.57 which was the lowest since 7th June. This is a contrarian indicator.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: Momentum turned down last week but Chart prints back above the 4mn poc at 1.2964.
+ Dollar Index: Chart currently printing at the 80.15 major level
+ TLT: is printing below the 125.50 (the 9mn poc).
imo these charts have a positive bias for equities.
