Stock market today 14th December 2016
See previous comments. ES found Support early last week at 2200, the 5week poc, see chart, and held that strong price location with all Value Areas since then printed above that level with Aggressive Buying (green-at-top) marked three times. Tuesday’s Value Area was higher again with ES (and SPY) reaching a new high. Technically the market is overbought with 14day RSI on Tuesday reaching 78.15 for SPY but as long as ES chart holds above 2200 it is in a strong price location.
First Level Support = 2200 (minor poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio is at 8.16. Close to 8.48, the 11 month high reached on 5th December.
Stocks>50dyma numbers: Nyse 79%, Nasdaq 79%, R2000 83%. Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – on Monday TLT printed its lowest level since July 2015 testing the major poc Support at 117.15. Has rallied a little since that test.
Dollar Index: 11/24 chart reached its highest level since April 2003. Is currently printing just 1% below that level.
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. On Tuesday printed its lowest level since early February.
Oil: USO – since start of December chart has been printing above 10.78, the maj poc in a strong price location. On Monday printed its highest level since late June.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then.
click to enlarge graphic
