emini analysis 22nd August 2017 – pre-open from Chartprofit
See previous highlighted comments. Last two Value Areas have been printed entirely below 2436.50 (7mn poc). Price being accepted below that level is an indication of weakness. Overnight ES rallied to briefly probe 2436.50, the 7mn poc. Price printing time above that level would be the first minor positive. The Pulse Chart remains weak – currently daily price momentum for SPY is negative and down and the Breadth indicator is red.
First Level Support/Resistance = 2436.50 (7mn poc)
There is previous poc Support at 2353.00 but this is not a major level.
Sentiment: My version of the Rydex Assets Ratio was higher at 13.2 The ratio reached 14.63 the previous week and 15.21 on 06/30, the highest in the database.
Market Charts: All major market charts are negative.
Stocks>50dyma numbers: Nyse 37% (from 36%), Nasdaq 30% (from 32%), R2000 28% (unch). Numbers >50 are supportive.
Bonds: TLT – since mid-May TLT has been printing above 121.63, the 8mn poc, in a strong price location.
Dollar Index: 07/14 broke below the Support at 95.57, the 2yr poc, and then fell sharply. Chart remains below that level in a weak LT price location.
Gold: GLD is printing back above 119.84, the maj poc in a strong LT price location. On Friday cash Gold reached its highest level since November.
Oil: USO – the major poc has migrated lower from 11.44 to 10.14. USO is printing below that level in a weak price location.
GBPUSD: as long as chart holds above 1.278, the maj poc, it is in a strong price location in the LT but in the ST, 1.2936, the 5month poc Support was broken last week which put the chart in a weaker ST position.
EURUSD: in early July EURUSD found higher low Support at 1.1329, the maj poc and has rallied strongly from there. Earlier this month chart reached its highest level since early 2015.
USDJPY: 111.30 is the 2year poc. Currently the chart prints below that level in a weak price location. 108.87 is the 1/2R off 2016 low and has provided Support three times this year. Price breaking this proven Support would be an indication of further weakness.
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