Technical analysis – Market pre-open 13th April 2016
See previous comments. On Tuesday I marked Significant Buying (green) twice. ES finished the session just below 2057.00, the minor Resistance, but overnight has rallied above this level and pre-open has printed high 2060s. 2057.00 is now minor First Level Support but as long as it holds above 2041.00 it is in a strong price location.
First Level Support = 2057.00 (minor poc)
Second Level Support = 2041.00 (2mn poc)
Key Charts: The German DAX index has broken above 9740, the major poc, putting it in a stronger price location.
Stocks>50dyma numbers: Nyse 84% (from 80%), Nasdaq 73% (from 69%), R2000 76% (from 70%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.20, a three month high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: monitoring these level: TLT 128.43, the 3mn poc, and IEF 110.38, the 4mn poc. Charts must hold these levels to maintain a strong price location.
Dollar Index: printing below the 97.40 poc in a weak price location but up today.
Gold: GLD – recently found Support at the previous poc at 115.50. Price below this level would suggest weakness but is currently in a strong price location above 118.05, the major poc.
Oil: USO last week found Support at 9.00, the 6mn poc and has rallied strongly from there.
EURUSD: found Support recently at 1.1085, the 1/2R off last year’s low and has rallied from there. On Tuesday printed its highest level since October but is lower from there.
