emini analysis 27th January – pre-open from Chartprofit
On Tuesday ES broke out of its range to a new high. Breadth and Momentum improved (see Pulse Chart), and Aggressive Buying (green-at-top) was marked. Wednesday’s Value Area was higher and Thursday’s VA was generated within Wednesday’s. As long as ES holds above 2265.00 it is in a strong price location.
Dayframe: the very minor (5 day) poc is at 2293.00. Price relative to this level today may be useful to monitor re intraday strength.
First Level Support = 2265.00 (4 month poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 6.78. Down from 10.74 at the end of last week and the market higher this week. More on this in today’s video. On 01/03 the ratio reached 11.83, the highest ratio since June 2015.
Stocks>50dyma numbers: Nyse 71% (from 74%), Nasdaq 60% (from 63%), R2000 60% (from 65%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – two weeks ago the major poc migrated higher to 121.60. TLT has closed below that level for seven consecutive days days which is weak price location. TLT must print back above that poc to regain a strong position.
Dollar Index: On 01/03 the index printed its highest level since April 2003. Off from there and printed a 35 day low on Thursday. Currently printing a five day high.
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 Resistance was probed last week but GLD is off from there. Cash gold also stalled at 1210.38, its equivalent 1/2R Resistance, and is printing down from that level.
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. Printed a 33day high on Tuesday.
click graphic to enlarge
