emini analysis 19th January 2017 – pre-open from Chartprofit
The four month poc at 2265.00 continues to attract time. Price relative to this level is important to monitor and could be Support or Resistance intraday today. There has been no significant Buying (green) or Selling (red) marked for eleven days and this lack of directional commitment has resulted in overlapping Value Areas, see chart, market is looking for the next catalyst. If ES is printing above 2265.00 it is in a strong price location. Significant Selling marked below that point would be a negative.
First Level Support/Resistance = 2265.00 (4 month poc)
Second Level Support = 2159.50 (6month poc)
Momentum (PriceOsc): on the SPY chart is positive and climbing (see Pulse chart) but remains negative on the IWM chart.
Sentiment: My version of the Rydex Assets Ratio is at 8.79. The Ratio reached 11.83 on 01/03, the highest ratio since June 2015.
Stocks>50dyma numbers: Nyse 70% (unch), Nasdaq 61% (from 60%), R2000 60%(from 58%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – last week the major poc migrated higher to 121.60. TLT closed below that level on Wednesday. TLT must print back above this level to maintain a strong price location.
Dollar Index: On 01/03 the index printed its highest level since April 2003. On Tuesday printed a 28 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. This level was briefly probed on Tuesday but closed below it on Wednesday. Cash gold has also stalled at 1210.38 which is its equivalent 1/2R Resistance. Price above these levels would be stronger location.
Oil: USO – since the start of December USO has been printing above 10.78, the maj poc. Chart must hold this Support to remain in a strong price location.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On 01/03 printed its lowest level since early 2003. On Tuesday printed a 28day high.
click graphic to enlarge
