Stock market today 7th December 2016 – pre-open from Chartprofit
See previous comments. Both Monday’s and Tuesday’s Value Areas have been printed above 2200, the 5week poc. and as long as ES holds above that level it is in a strong price location. Significant Buying marked above 2200 would be a further positive.
First Level Support = 2200 (5week poc)
Second Level Support = 2159.50 (6month poc)
Stocks>50dyma numbers: Nyse 70% (from 68%), Nasdaq 68% (from 66%), R2000 79% (from 76%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 7.94. Down from Monday’s ratio at 8.48 which was an eleven month high. I wrote yesterday “The ratio at an 11 month high is always worth noting as a warning but it seems that Bear fund assets AND Bull fund assets both fell sharply yesterday and that’s rare. Bull fund assets falling 19% in one day would usually be a positive.”
Supporting Charts
Bonds: TLT – last week the chart printed as low as 117.64, its lowest level since December. The major poc Support is a little lower at 117.15.
Dollar Index: 11/24 chart reached its highest level since April 2003. On Monday printed a twelve day low.
Gold: 11/23 GLD broke below 115.69, the 1/2R off last year’s low which put the chart in a weak price location. Price back above that level would be the first positive.
Oil: USO – is now printing back above 10.78, the maj poc in a strong price location. This is a Key Chart and a Key level.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On Monday chart printed as low as 1.0503, its lowest level since March 2015 and then reversed higher to print a fourteen day high.
click to enlarge graphic
