S&P 500 emini pre-open Wednesday 10th December

posted 08.33 a.m. est

On Tuesday Buyers Reacted (green-at-bottom) to a test of First Level Support at 2035.00, see chart and yesterday’s comments. Buyers were active throughout the session but the Value Area was lower and wider. I would want to see Effective Buying marked before considering new longs. First sign of LT weakness would be price printing below 2035.00.

ES First Level Resistance = 2066.00 (1mn poc)
ES First Level Support = 2035.00 (2mn poc)
ES Second Level Support = 1962.00 (6mn poc)

Stocks>50dyma numbers: Nyse 67% (from 65%), Nasdaq 66% (from 60%), R2000 72% (from 65%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 13.28. Last week the ratio reached 13.73 which is the highest in the database. 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 on Tuesday printed a 37day high.
Dollar Index: on Monday printed its highest level since March 09.
Gold GLD: printed a 33day high on Tuesday but remains in a weak price location if it prints below the 119.87 maj poc.
Oil USO: pre-open today has printed a new low for this move and looks set to test the extreme low of Feb 2009.
EURUSD: tested 1.2300, major Time Support, on Monday. Currently printing just above that level.