Stock market today 7th November 2016 – pre-open from Chartprofit
ES analysis: Please read previous comments on graphic. Friday’s session generated an overlapping/lower Value Area and the major poc at 2087 was tested again but we have not yet seen a Value Area generated entirely below that level. This gives us the possibility that ES will find Support here and rally. Even so, in the longer term, breadth and price momentum would need to improve significantally before I would consider the long side, see Pulse chart. Price printing time below 2087 would very weak price location. Pre-open today ES is printing above 2100.
First Level Resistance= 2133.00 (2month poc)
Major poc Support = 2087.00
Key chart:
IWM major poc at 115.35. Chart fell heavily last week but has so far held this Support.
Market Charts: All U.S. major Market Charts are negative. UK is neutral.
Stocks>50dyma numbers: Nyse 27% (from 26%), Nasdaq 26% (from 25%), R2000 25% (from 24%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.15. On 08/26 the ratio reached 7.90, 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 fell sharply from there. The 3year poc is at 130.77, TLT needs to hold that level to remain in a strong price location.
Dollar Index: on 10/25 chart printed its highest level since early February but fell heavily last 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 rallied last week to 124.78 the 1/2R Resistance off the July high. Price printing time above that level would be a positive.
Oil: USO – USO broke below 10.78, the 18mn poc, last Monday and fell sharply for the rest of the week.
EURUSD: is today printing back below 1.1083, the major 1/2R in a weak price location.
click on graphic to enlarge
