emini analysis 2nd August 2016 pre-open from Chartprofit
Monday’s session generated a lower Value Area but the session low came in with a test of First Level Support (2160.50), see yesterday’s highlighted comments. Overnight there has been a further test of that Support. Price printing time below that level would be a sign of minor weakness.
First Level Support = 2160.50 (2mn poc)
Second Level Support = 2087.00 (major poc)
Stocks>50dyma numbers: Nyse 68% (from 73%), Nasdaq 69% (unch), R2000 70% (from 72%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 5.78. Friday’s ratio at 6.00 was a six month high.
Supporting Charts:
Bonds: On Monday TLT closed in a weaker price location below 140.30, the min 1/2R off the July high. More important Support is at 130.77 (3year poc). Futures indicate a lower open today.
Dollar Index: printing below 96.21, the 1/2R off the December high in a weaker price location and is close to testing the important Support at 95.25 (2yr poc).
Gold: On Monday GLD closed in a strong price location above 128.13, the minor 1/2R off the July high. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location.
Oil: USO – the 9mn poc is at 10.78 and the 1/2R off February’s low is at 10.06. USO closed below both levels in a weak price location.
EURUSD: Currently printing below 1.1313, the 4yr poc, but above 1.11, the 1/2R off last year’s low.
click graphic to enlarge
