pre-open comment Wednesday 19th December
Note: As of Monday on the chart we are now following the March contract.
Tuesday’s session generated a higher, wider Value Area on increased Volume. Aggressive Buying was marked again. Buyers are in control of the dayframe.
First Level Support = 1413 (3mn poc).
Second Level Support = 1406 (maj poc)
Breadth. %Stocks>50dyma numbers: Nyse 71% and Nasdaq 62%. Numbers >50 are supportive.
Price location: Strong. All four major equity ETFs print convincingly above their 1/2R levels which are: SPY 141.40; IWM 81.55; DIA 130.45; QQQ 65.95; XLK 29.48.
Also, QQQ and IWM are not outperforming Large Caps in the very short term.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.47. The recent low for the ratio at 2.57 on 11/16 was the lowest since 7th June. The ISEE (equity only) index recorded 289 on Monday which is the highest single reading since 03/26; but fell back sharply to 148 yesterday. The 10dyma (our indicator) is currrently at 180, an 8month high, but note it reached well above 200 in March/April before the price high.
Supporting Charts (+ or – or ? for equities). Momentum = daily PriceOsc
+ EURUSD: has today printed its highest level since April.
+ Dollar Index: currently printing below the 80.15 major level which is weak price location. Support at the 79.19 poc which is just below current price.
+ TLT: Hit a 40day low on Tuesday.
imo these charts suggest a positive bias for equities.
