posted 08.55 a.m. est
See previous highlighted comments. Overnight the 4mn poc has now migrated down to 2009.50. Price relative to this level is important to monitor. Significant Buying marked above 2009.50 would be a positive. I have said that a new price distribution began in October and interestingly with the poc migration, the VAL of that distribution is now at 1964.50 (dashed) which is close to the Maj Support at 1962.00. The VAH is currently 2055.50 (dashed).
Breadth numbers weakened further, see below, and PriceOsc (Momentum) for all four major Stock Index ETFs is negative and falling – Bulls would want to see this indicator improving as well.
First Level S/R = 2009.50 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)
Stocks>50dyma numbers: Nyse 39% (from 43%), Nasdaq 40% (from 41%), R2000 41% (from 45%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.27. This indicator registered little fear during the recent decline and historically it is still very high. In early December the ratio reached 13.73, the highest in the database.
Supporting Charts:
Bonds TLT: recently exceeded the 2012 high and pre-open today has printed a new high.
Dollar Index: on Friday printed its highest level since 2003.
Gold GLD: has rallied strongly this month and pre-open today is printing above 124.12, the major poc on the daily chart. Time printed above this level is strong price location.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and printed a new low last week.
EURUSD: probed the 4mn Time Resistance at 1.2475 last month and is lower from there, printing below 1.2300, the maj poc, and on Friday printed its lowest level since 2003.
