Stock market today 13th 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. Wednesday’s session generated a narrow, “inside” Value Area and overnight ES has printed as low as 2113.50. Although I have yet to mark Significant Selling, see previous comments, ES is in a weak price location and the Pulse Chart has deteriorated.
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 and Wednesday in a weak price location. QQQ 116.97 = 4mn poc Support with low on Tuesday and Wednesday coming just above that level.
Momentum (PriceOsc) for all four major stock index ETFs is positive but ticking lower.
Stocks>50dyma numbers: Nyse 38% (from 39%), Nasdaq 46% (from 48%), R2000 45% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.74. 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 six 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 ten 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
