Stock market report pre-open 2nd June 2016 Chartprofit
Wednesday generated another overlapping Value Area with a low. ES is currently in a strong price location and this higher range, 2085-2095 has not yet attracted Significant Selling (which has not been marked for ten days).
Dayframe: The v minor poc (10day) poc has moved to 2089.00. Useful reference for short term traders.
First Level Support = 2063.50 (minor 1/2R off April high)
Second Level Support = 2054.50 (maj poc)
Stocks>50dyma numbers: Nyse 63% (from 62%), Nasdaq 62% (from 61%), R2000 66% (from 64%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was again almost unchanged at 3.95. On 04/26 the ratio reached 5.27 which was 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: TLT closed below 130.77, the 8mn poc, in a weak price location. Bulls would want the chart printing time back above that level.
Dollar Index: Now printing above 94.79, the 2yr poc, in a stronger price location.
Gold: GLD – last week broke below 118.22, the major poc which put the chart in a weak price location. Has now stalled at 115.50 which was previously the major poc and also the April low. I am assuming this is still valid Support and therefore price below this level would be weaker price location.
Oil: last week futures printed the highest level since October.
EURUSD: last week broke below 1.1198, the 3yr poc Support. Currently printing just below that level. Support at 1.1084, the 1/2R off last year’s low – if this Suppoort is broken it would indicate further weakness.
