S&P 500 emini pre-open Wednesday 7th January

posted 09.17 a.m. est

For three consecutive days the Value Area has been generated entirely below the previous one. This is a weak pattern but there is major Support a little lower at 1962.00, the 6mn poc. Bulls would not want to see time printed below this level.
I will wait for Significant Buying (green) to be marked before considering new longs. Breadth has deteriorated further , see below, and the Rydex traders have still not shown much fear so far this week which is a concern, see below.

Stock Index ETFs: Key Chart IWM broke below 116.00 on Tuesday (its 18mn Time Support) but pre-open today has recovered that level.

First Level Resistance = 2070.00 (4mn poc)
Major Support = 1962.00 (6mn poc) and SPY 197.20 (8mn poc)

Stocks>50dyma numbers: Nyse 35% (from 44%), Nasdaq 36% (from 48%), R2000 39% (from 52%). Numbers >50 are supportive.

Sentiment: My version of the Rydex Assets Ratio was lower at 10.92. SPY is down nearly 5% (high to low) in five days and the ratio hasn’t fallen significantly. As we’ve seen many times, we may need to see some fear here before a low can be found. In early December the ratio reached 13.73, the highest in the database.

Supporting Charts:
Bonds TLT: exceeded the 2012 high on Tuesday.
Dollar Index:higher again today to its highest level since December 2005.
Gold GLD: remains in a weak LT price location below the 119.87 maj poc but pre-open today is printing above 114.78, the 8mn poc.
Oil USO: on 12/12 broke below the extreme low of Feb 2009 and on Tuesday printed a new low.
EURUSD: probed the 4mn Time Resistance at 1.2475 last month and is lower from there, printing below 1.2300, the maj poc, and today has printed its lowest level since 2005.