Technical analysis – Market pre-open 27th April 2016
Tuesday generated a higher Value Area but below 2086.00, the minor poc. As I wrote last week I would want to see Significant Buying (green) marked before initiating new long trades, and at current levels I would prefer that to be above 2086. One hour pre-open ES prints just below that level.
First Level S/R = 2086.00 (min poc)
Support = 2041.00 (2mn poc)
Stocks>50dyma numbers: Nyse 82% (from 80%), Nasdaq 76% (from 75%), R2000 83% (from 79%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 5.27 which is the highest level since early January. 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 last week. The 6mn poc migrated to 130.78 and that is now Resistance with Support at 126.70, the 1/2R off last year’s high.
Dollar Index: Currently printing below 94.79, the 2yr poc, in a weak price location.
Gold: GLD – closed on Tuesday above 118.22, the major poc. Time printed above this level would be a positive.
Oil: USO earlier in the month found Support at 9.00, the 6mn poc and rallied from there. Today Oil has printed its highest level since November.
EURUSD: Currently printing above 1.1198 (3yr poc) and needs to hold that level to remain in a a strong price location.
