S&P 500 emini pre-open Wednesday 24th December

posted 08.52 a.m. est

Tuesday’s session generated another very narrow Value Area on low Volume. As long as ES holds 2066.00 it is in a strong price location.

First Level Support = 2066.00 (3mn poc)
Second Level Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)

Stock Index ETFs: Momentum (PriceOsc) is moving up for all four major indices. This indicator remains below zero for SPY, DIA and QQQ but has just turned positive for IWM (small caps). IWM is probing the highs set in March and July and we should watch for rejection or breakout on this chart. IWM has been the laggard of the four for a while now but this could be changing. Since the low earlier in the month IWM has gained 6% and is the best performer from that point. It is usually taken as a positive sign when small caps lead.

Stocks>50dyma numbers: Nyse 68% (from 66%), Nasdaq 62% (from 64%), R2000 71% (from 70%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was higher at 11.44. Earlier in the month the ratio reached 13.73, the highest in the database and once again this needs to be watched with the ratio climbing again. Note that Bear Fund assets I follow (as a total) set a new low on Monday.

Supporting Charts:
Bonds TLT: last week probed above the October high to print its highest level since August 2012. Has printed a 12day low pre-open today but remains in a LT strong price location as long as it holds above 117.14 (maj poc).
Dollar Index: early last week held the minor Support at 87.70 (2mn poc) and on Tuesday printed its highest level since April 2006.
Gold GLD: remains in a weak price location below the 119.87 maj poc.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and remains close to the new low printed last week.
EURUSD: probed the 4mn Time Resistance at 1.2475 last week and is lower from there. Is today printing below 1.2300, the maj poc and on Tuesday printed its lowest level since August 2012.