Stock market today 27th September 2016 – pre-open from Chartprofit
ES analysis: Monday’s session generated a lower Value Area but entirely above 2135.00 (minor poc), see Thursday’s highlighted comments. Overnight there was a brief test of 2135 and then a rally back above 2150 which has faded. Two hours pre-open ES prints just above 2140. In the ST ES needs to hold 2135.00 to maintain a strong price location.
First Level Support = 2135.00 = minor (15day) poc
Major poc Support = 2087.00
Pulse Chart: Breadth deteriorated yesterday, see below, and Daily Momentum (PriceOsc) for SPY is negative and ticked back down.
Stocks>50dyma numbers: Nyse 44% (from 51%), Nasdaq 55% (from 63%), R2000 53% (from 61%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 6.65. 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 fell sharply. Last week and Monday saw a rally but TLT remains in a weak price location below138.33, the 1/2R Resistance off the June high.
Dollar Index: The 1/2R off Dec high Resistance is at 96.21. This was probed and rejected last week. Price above that level would put the chart in a stronger position. Support lower at 94.76 (2yr poc).
Gold: GLD rallied last week but still prints below 127.85 (1/2R off July high). Price above that level would put the chart in a stronger position. The major poc Support is at 118.22 (maj poc).
Oil: USO – closed above 10.06 (1/2R off Feb low) on Friday. Resistance at 10.78, the 18mn poc. Price above that level would be a positive.
EURUSD: the 4yr poc is now at 1.1165 and the chart is currently printing above that level in a strong price location.
click to enlarge graphic
