Technical analysis – Market pre-open 8th December 2015
Monday’s session opened just below the area of Resistance and immediately sold-off. Friday’s green-at-top high was not tested, see Thursday’s comments. Buying marked above 2094.00 would indicate higher and Selling marked below 2054.50 would indicate lower. Pre-open to9day ES has printed as low as 2057.25.
Key Charts: IWM (R2000 ETF) – watching price relative to the Major poc at 115.35 post-open today. See also Oil, below.
Area of Price Resistance 2087.00 (5mn poc) to 2094.00 (maj poc)
First Level Support = 2054.50 (1/2R off the November high)
Breadth deteriorated, see below.
Stocks>50dyma numbers: Nyse 47% (from 56%), Nasdaq 51% (from 57%), R2000 51% (from 59%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 8.40. Last week the ratio reached 9.00 which was a 70day high.
Supporting Charts:
Bonds IEF, the 7-10 yr ETF: probed the Resistance at 106.60 (18mn poc) last week. This was rejected but the chart has held the 105.00 (major poc) Support and is up from there. Price below that level would be weak price location.
Dollar Index: last week printed its highest level since the March high but sharply lower on Thusday following the ECB announcement.
Gold GLD: cash Gold printed a new five year low last week but has rallied. Very weak price location.
Oil: broke below the August low on Monday to a six year low and is lower today.
EURUSD: last week printed its lowest level since April but sharply higher at the end of the week following the ECB announcement.
