emini analysis 1st June 2017 – pre-open from Chartprofit
Dayframe: The minor poc is at 2411.50 and price relative to that level may be a useful guide to ST strength/weakness. Overnight ES has found Support there twice.
Bonds and Gold have moved to stronger price locations, Oil has moved weaker. See below. And breadth numbers are below 50. Not an ideal scenario for equities but as long as ES holds above 2411.50 it is in a strong location even on the minor timeframe.
In the longer timeframe, here’s the Support:
First Level Support = 2384 (5mn poc)
Second Level Support = 2353 (poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 9.68. Last week the ratio fell to 7.75, a 71 day low, and as I wrote “this is a contrarian indicator so this is most likely a positive”. On 1st March the ratio reached 14.02, the second highest ratio in the database.
Stocks>50dyma numbers: Nyse 49% (unch), Nasdaq 47% (from 46%), R2000 43% (from 42%).
Numbers >50 are supportive.
Bonds: TLT – last ten days have been printed back above 121.63, the 8mn poc, in a strong price location.
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: closed above 119.84, the maj poc, in a stronger price location. Time printed above that level would be a positive.
Oil: USO – is this week printing back below 10.28, the 4mn poc, in a weaker price location. Key chart.
GBPUSD: In the LT, as long as chart holds above 1.2478, the maj poc, it is in a strong price location.
EURUSD: last month the chart tested the Support at 1.0597, the 7mn poc, and held. Has rallied from there. Last week printed its highest level since November.
USDJPY: earlier in the month the Resistance at 113.61 (4mn poc) was tested, but that test looks to have been rejected.
click to enlarge graphic
