Pre-open comment Friday 13th December
Thursday’s session generated a lower, narrower Value Area. See yesterday’s highlighted pre-open comments.
The ST Support trendlines I drew on the four stock index ETF charts broke down and Momentum for all four charts is now down. IWM is a good chart to monitor. It found Support yesterday just above 109.16, its 2mn poc. Look for further weakness if time is spent below that level.
First Level Resistance = 1792.00 poc
First Level Support = 1758.50 poc
Stocks>50dyma numbers: Nyse 45% (from 47%), Nasdaq 49% (from 51%), R2000 48% (unchanged). Numbers >50 are considered supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 5.47. Last week’s ratio at 5.67 is the highest in my database. This indicator is registering extreme optimism which has historically been a warning for the market.
Supporting Charts
Bonds TLT: Last week probed the August low. Remains in a weak price location.
Gold GLD: Still in a very weak price location.
Oil USO: Back in a stronger price location back above 34.13, (3yr poc). Momentum is now positive and up.
Dollar Index: Is today printing back above (just) the 80.15 Support.
EURUSD: Printed a 30day high on Wedneday. Momentum is up and positive.
