Stock market today 26th October 2016 – pre-open from Chartprofit
ES analysis: Mondays’ Value Area was higher but narrower on low volume which is not normally ST positive. That’s why I wanted to see if Tuesday could also hold above 2142.50 before I made assumptions about strength, even minor, see yesterday’s highlighted comments. Tuesday’s session generated a Value Area back below that level and right now it looks like another rejected probe of that Resistance. 2133.00 is now the 2month poc and could be Resistance (or Support) intraday today, pre-open ES is printing below that level. Breadth deteriorated again yesterday, see below. This needs to improve as does price momentum, see Pulse Chart.
Second Level Resistance = 2154.00 (poc)
First Level Resistance = 2142.25 (1/2R off Aug high)
Support/Resistance today = 2133.00 (2month poc)
Major poc Support = 2087.00
Key Charts/Levels: IWM the 10mn poc has migrated to 120.82. Tuesday’s cloe was just above this level but likely to open below it today. Chart QQQ 116.97 = 4mn poc Support. Chart closed above that level on Tuesday.
Stocks>50dyma numbers: Nyse 37% (from 41%), Nasdaq 41% (from 45%), R2000 39% (from 45%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.72. Monday’s ratio 5.92 was a 59 day low. The ratio reached 7.90 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.
Dollar Index: on Tuesday printed its highest level since early February. Off that high today.
Gold: last month GLD tested 127.85, the 1/2R Resistance off the July high. This was rejected and chart declined sharply from there but has so far held the major poc Support at 119.84 (maj poc).
Oil: USO – USO has been printing above 10.78, the 18mn poc, for three weeks and on Wednesday last week printed its highest level since late June.
EURUSD: 10/10 the chart broke below the 1.1165 (4yr poc) and below 1.1083 (maj 1/2R) the following day. Remains in a weak price location and on Tuesday printed its lowest level since March.
click graphic to enlarge
