Stock market today 21st September 2016 – pre-open from Chartprofit
ES analysis: For the December ES contract, the 1/2R off the August high comes in at 2142.25. ES again probed this level in Tuesday’s session as it did in Monday’s and Thursday’s, see chart. Price printing time above this level would be a positive. Overnight that level was probed again and 30 minutes pre-open ES prints 2137.00. The last three Value Areas have been printed within the range of last Thursday’s Value Area as price action tightened ahead of today’s risk event and this may be a useful level to monitor today re ST strength/weakness.
Price momentum (PriceOsc) on the Pulse Chart is negative and heading down and Breadth is also red so I’m cautious here but major Support at ES 2087 and SPY 209.90 has not been tested and as long as these levels hold the charts are in a LT strong price location.
First Level Resistance = 2142.25 (1/2R off August high, Dec contract)
Major poc Support = 2087.00
Stock index ETFs: minor 1/2R levels to watch for SPY and IWM – (note that these will change if the charts make new lows for this move). SPY = 215.95 IWM = 122.66
Stocks>50dyma numbers: Nyse 35% (from 37%), Nasdaq 53% (from 54%), R2000 48% (from 50%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.35. The ratio reached 7.9 on 08/26, a seven month high.
Supporting Charts:
Bonds: TLT – following the weak pattern in August (see previous analysis) the chart has fallen sharply reaching a twelve week low last week.
Dollar Index: has today probed 96.21, 1/2R off Dec high. Price above that level would put the chart in a stronger position. Support lower at 94.76 (2yr poc).
Gold: GLD is printing below 127.85 (1/2R off July high). This is weak price location in the ST. The major poc Support is at 118.22 (maj poc) – there is a possibility that poc could migrate higher – I am watching for that. Cash indicates a higher open for GLD today.
Oil: USO – is printing below 10.78, the 18mn poc in a weak price location. Futures indicate a higher open for USO today.
EURUSD: recently found Support at 1.1139, the 4yr poc and currently the chart is printing very close to that level. There is also Support lower at 1.1083, 1/2R of last year’s low.
Click graphic to enlarge
