Technical analysis – Market pre-open 9th December 2015
The First Level Support at 2054.50 (1/2R off the November high) was briefly tested early in Wednesday’s session, but held subsequently. Intraday, Buyers were most active, but Ineffective as they only managed to generate a lower Value Area. Buying marked above 2094.00 would indicate higher and Selling marked below 2054.50 would indicate lower. Thirty minutes pre-open ES is printing “at” that Support. Breadth numbers deteriorated again, see below.
Key Charts: IWM (R2000 ETF) – watching price relative to the Major poc at 115.35.
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 40% (from 47%), Nasdaq 49% (from 51%), R2000 46% (from 51%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was unchanged 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. Lower today and Momentum has turned negative.
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.
EURUSD: last week printed its lowest level since April but sharply higher at the end of the week following the ECB announcement and is currently printing at the high of this rally.
