Technical analysis – Market pre-open 21st April 2016
Wednesday’s session generated another higher Value Area. As long as ES holds above 2041.00 it is in a strong price location. First Level Support has moved up to a minor (12day) poc at 2075.50.
First Level Support = 2075.50 (min poc)
Second Level Support = 2041.00 (2mn poc)
Stocks>50dyma numbers: Nyse 87% (from 90%), Nasdaq 79% (from 80%), R2000 84% (from 85%). Numbers >50 are supportive.
Sentiment: Another up day from the market and my version of the Rydex Assets Ratio was lower (slightly) again at 4.40. Last Wednesday’s ratio at 5.20 was a three month high but on 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: monitoring these level: TLT was sharply lower on Wednesday although closed above 128.43, the 3mn poc Support. Futures indicate a lower open today.
Dollar Index: still printing below the 97.40 poc in a weak price location.
Gold: GLD – closed above 118.05, the major poc. GLD needs to hold this level to remain in a strong price location. Futures indicate a higher open today.
Oil: USO earlier in the month found Support at 9.00, the 6mn poc and rallied from there. Opened sharply lower on Monday but recovered with Tuesday and Wednesday higher and futures indicate a higher open today.
EURUSD: Last Tuesday printed its highest level since October and as long as it holds 1.1198 (3yr poc) it is in a a strong price location.
