Stock market today 3rd November 2016 – pre-open from Chartprofit
ES analysis: Please read previous comments on graphic. Little to add to previous comments. Wednesday’s session generated an “inside” Value Area but the major poc at 2087 was tested. Price printing time below that level would be a very weak price location. Key charts IWM and QQQ are both in weak price locations now and breadth deteriorated again, see below.
First Level Resistance= 2133.00 (2month poc)
Major poc Support = 2087.00
Stocks>50dyma numbers: Nyse 25% (from 29%), Nasdaq 25% (from 30%), R2000 33% (from 27%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 6.52. The ratio reached 7.90 on 08/26, the highest ratio for the last ten months.
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. The 3year poc is at 130.77, TLT needs to hold that level to remain in a strong price location.
Dollar Index: Last week printed its highest level since early February but is sharply lower this week.
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 and has rallied this week.
Oil: USO – USO is now printing below 10.78, the 18mn poc. This is weak price location. The COT data does not look encouraging, see eBook.
EURUSD: has tested the major 1/2R at 1.1083 (maj 1/2R) this week but remains below 1.1165, the 4yr poc.
click to enlarge graphic
