Stock market today 9th November 2016 – pre-open from Chartprofit
ES analysis: There was extreme volatility overnight as ES plummeted below 2030 as the election result became clear. However a rally back of more than 4% leaves ES printing back above 2087.00, the major poc. If price prints time (a Value Area for position traders) back below that level, and under less stressful/volatile conditions, it would be a bearish indication. The 1/2R off the August high is now at 2106.5 and pre-open ES is printing close to that level.
Second Level Resistance = 2133.00 (now 3month poc)
First Level Support/Resistance = 2106.50 (1/2R off August high)
Major poc = 2087.00
Key chart:
IWM – the major poc is at 115.35. According to pre-market quotes IWM is holding above that level today. Price printing below this now proven Support would be very weak location.
Stocks>50dyma numbers: Nyse 42%, Nasdaq 38%, R2000 39%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 6.29. 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 closed below that level yesterday in a weak price location and today T-bond futures are sharply lower.
Dollar Index: extreme volatility overnight as per the equity futures. Dollar index fell heavily but recovered to print back within yesterday’s range.
Gold: Held the major poc Support at 119.84 and rallied last week to 124.78 the 1/2R Resistance off the July high. Price above this level would be strong price location.
Oil: USO – USO broke below 10.78, the 18mn poc, at the end of October and has fallen sharply from there. The 1/2R off the Feb low is at 10.06 and USO has not yet broken this Support significantly.
EURUSD: is today printing below 1.1083, the major 1/2R in a weak price location.
click graphic to enlarge
