Pre-open comment Wednesday 14th December
Tuesday’s session high came in at exactly First Level Resistance at 1244. Aggressive Selling (red-at-bottom) was marked and as it was below the 1244 poc further weakness is indicated (see yesterday’s comments).
Key chart today is SPY and the level to watch is 122.30, the 1/2R off May high.
EURUSD tested the October low and price below that low has so far been accepted (again, see yesterday’s comments). EURUSD now looks set for a test of the 2011 low made in January.
First Level Resistance = ES 1244 (50dy poc) SPY =125.44
First Level S/R = ES 1214.50 (1/2R) SPY =122.30
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 2.57.
Supporting Charts (+ or – or ? for equities). (Momentum = PriceOsc)
– EURUSD: weak position. New eleven month low today. Chart looks set for a test of the 2011 low made in January. Momentum turned down on Monday.
– Dollar Index: Currently the chart is printing above the major Resistance at 80.15, the 1/2R off the 2008 low. Momentum turned up on Monday.
– TLT: Chart appears to have formed a higher low on the 116.34 poc Support. Printing an 11day high today.
imo these charts have a negative bias for equities.
