Stock market today 12th October 2016 – pre-open from Chartprofit
ES analysis: Tueday’s session opened just below the 1 month poc at 2154.00 and immediately sold off, see yesterday’s comments. The next directional move could be indicated by green (significant buying) or red (selling) being marked above or below this level. The 1/2R off August high, at 2142.25, now becomes important Resistance.
Second Level Resistance = 2154.00 (1 month poc)
First Level Resistance = 2142.25 (1/2R off Aug high)
Major poc Support = 2087.00
Key Charts/Levels: IWM 122.65 = 5mn poc. Chart closed below that level on Tuesday in a weak price location. QQQ 116.97 = 4mn poc Support with low on Tuesday coming in at 117.00.
Momentum (PriceOsc) for all four major stock index ETFs is positive but ticked lower on Monday and Tuesday for SPY, IWM and QQQ. Breadth deteriorated again on Tuesday, see below.
Stocks>50dyma numbers: Nyse 39% (from 49%), Nasdaq 48% (from 58%), R2000 45% (from 55%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 7.00. The ratio reached 7.9 on 08/26, a seven month high.
Supporting Charts:
Bonds: TLT – At the end of September there was a rejected probe of the 4mn poc Resistance at 139.00. Chart is sharply lower from there and printed its lowest level since June 23rd on Monday.
Dollar Index: The 1/2R off Dec high is at 96.21. The chart has printing above that level in a strong position for five days now.
Gold: last month GLD tested 127.85, the 1/2R Resistance off the July high. This was rejected and chart has declined sharply from there. Friday’s low was 118.42, just above the major poc Support at 118.22 (maj poc).
Oil: USO – USO has been printing above 10.78, the 18mn poc, for nine days now and on Monday printed its highest level since 1st July.
EURUSD: chart broke below the 1.1165 (4yr poc) on Monday and is today printing below 1.1083 (maj 1/2R) in a weak price location.
click graphic to enlarge
