emini analysis 6th February 2017 – pre-open from Chartprofit
The sell-off in the early part of last week found Support at the 4 month poc (2265.00) – see chart. On Friday ES opened above 2281.00 (the very minor 1/2R off the recent high) and rallied to a strong close for the week. ES needs to hold above that level to maintain a strong price location in the ST.
Momentum (PriceOsc) on the SPY chart is positive and turned back up on Friday.
First Level Support = 2265.00 (4 month poc)
Second Level Support = 2159.50 (6month poc)
Key Charts; IWM 136.70 is the 2mn poc Resistance. Time above that level would be a positive. Open is likely to be close to that price.
DAX is currently printing below 11577.00, its 3mn poc.
Sentiment: My version of the Rydex Assets Ratio ended the week at 11.76. Thursday’s ratio at On 01/03 the ratio reached 11.83, the highest ratio since June 2015.
Market Charts: Nyse and U.K. stayed positive, Nasdaq and R2000 turned neutral.
Stocks>50dyma numbers: Nyse 63%, Nasdaq 55%, R2000 53%. Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – three weeks ago the major poc migrated higher to 121.60. TLT has closed below that level since that migration which is weak price location. TLT must print back above that poc to regain a strong position. Futures indicate a higher open today.
Dollar Index: On 01/03 the index printed its highest level since April 2003. Off from there. On Thursday printed its lowest level since mid November.
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. GLD closed above that level on Friday and Cash gold is currently printing above 1210.38, its equivalent 1/2R. This is stronger price location if these levels now hold.
Oil: USO – the major poc recently migrated higher from 10.78 to 11.44. Price relative to 11.44 is now important to monitor. USO closed above that level on Friday.
GBPUSD: 1.2419 is the 10mn poc Support. Chart is currently printing just above that level.
USDJPY: The 1/2R off the 2015 high comes in at 112.47 which has been Support this year. Chart is currently printing just below that Support.
click graphic to enlarge
