emini analysis 8th May 2017 – pre-open from Chartprofit
Last week there was a rejected test of the one month VAL at 2380, dashed line, see Wednesday’s highlighted comments. Last week’s Value Areas were printed above that level. On Friday ES found Support at the one month poc at 2385 and rallied to close the day and the week at the high. Significant Buying (green) was marked, see Friday’s, highlighted, comments. In the ST as long as ES holds above 2385 it is in a strong price location and in the LT as long as ES holds above 2353 (3month poc) it is in a strong price location.
Sentiment: My version of the Rydex Assets Ratio ended the week at 10.31. On 1st March the ratio reached 14.02, the second highest ratio in the database.
Market Charts: Nyse stayed negative; Nasdaq stayed positive; R2000 turned negative.
Stocks>50dyma numbers: Nyse 55%, Nasdaq 57%, R2000 55%. Numbers >50 are supportive.
Bonds: TLT – closed th week below 121.63, the 8mn poc. Price printing time below this level would be an indication of weakness. Futures indicate a higher open for TLT today. Key Chart.
Dollar Index: rallied back from the March low to probe 101.00, the major poc, in early April. That probe into Resistance was rejected. Chart remains in a weak price location.
Gold: last week GLD broke below119.84, the maj poc, and also below 119.07, the 1/2R off last year’s high. Weak price location.
Oil: USO – The Support at 10.06 (1/2R off 2016 low) was broken last week. Bulls would want to see USO back above that level. If not Oil could become a problem for equituies. Key chart.
GBPUSD: In the LT, as long as chart holds above above 1.2478, the maj poc, it is in a strong price location. Earlier today printed its highest level since September.
EURUSD: last month the chart tested the Support at 1.0597, the 7mn poc, and held. Chart is in a strong price location above that level and earlier today printed its highest level since November.
USDJPY: has been printing below 113.61, the 4mn poc, in a weak price location since early March. Chart has rallied and is now approaching that Resistance.
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